Toyota Profit Increase

Toyota Indus Motor Company’s net profit rose by 23% to Rs. 15.80 billion in the year ended June 30, 2022, thanks to an increase in sales and income from other sources, according to a filing on Tuesday. However, in the fourth quarter (April-June 2022) alone, its net profit shrank by 90% to Rs. 0.51 billion compared to Rs5.12 billion in the previous quarter (January-March 2022), the company said in a statement.

The automotive company announced that its production plant will be shut down for 16 days starting from September 1 to 16, 2022. The main reason for the shut down is due to the lack of inventory to maintain production due to the delay in approvals from State Bank of Pakistan (SBP) for import of CKD (completely knocked down or loose parts) kits and components of passenger vehicles. The Board of Directors recommended a final cash dividend of Rs. 3.25 per share, in addition to the combined interim cash dividend of Rs. 90.5 per share that was already paid during the year.

The company’s share price dropped 2.81% to Rs. 28.66 and closed at Rs991.43 with trading in 10,179 shares at the Pakistan Stock Exchange (PSX) on Tuesday. Indus Motor had reported a net profit of Rs. 12.83 billion in the previous year ended June 30, 2021, according to its profit or loss statement dispatched to the PSX.

“Increase in turnover and profitability for the year was mainly due to higher CKD and CBU (completely built up/ complete vehicle) sales volumes,”

Indus Motor said in the statement;

“The decrease in profitability in the last quarter was mainly due to increases in input costs, freight charges, and commodity prices. However, the company’s earnings per share increased to Rs. 201.04 in the year under review, compared to Rs. 163.21 in the previous year. Additionally, sales volume of CKD and CBU vehicles increased 31% to 75,611 units in the year ended June 30, 2022, compared to 57,731 units last year. Finally, the company produced 72,438 units in FY22 compared to 59,187 units produced during the previous fiscal year.”