The financial year 2022-23’s first quarter saw Toyota Indus Motor Company (IMC) Limited’s profit drop by 37.1% to Rs. 3.21 billion compared to Rs. 5.11 billion from the same period last year.
However, the car maker’s profit increased by 142% on a quarter-on-quarter (QoQ) basis, due to a gross margin improvement of 730 basis points, resulting in an operating profit after two consecutive quarterly operating losses in FY22, as reported by Arif Habib Limited (AHL).
Additionally, the company announced an interim cash dividend of Rs. 24.4 per share along with the results.
Net sales for the company fell by 29% to Rs. 48.19 billion from Rs. 68.2 billion, principally as a result of lower volumetric sales.
Massive inflationary pressures had a negative impact on consumer purchasing power and presented new problems for the business.
The company’s gross margins increased after two consecutive quarters of negative gross margins, reaching 6.3% as opposed to -1.0% in the prior quarter.
This improvement was ascribed by Ismail Iqbal Securities to the company’s several price increases that were put in place throughout the quarter to address expense challenges.
The company’s other revenue saw a minor 5% decline, falling to Rs. 3.03 billion from Rs. 3.18 billion in the same time the previous year.
It decreased by 12% on a QoQ basis, most likely as a result of a decline in cash and cash equivalents.
The company’s effective tax rate for the third quarter of FY23 was 33.5%, up from the 27.6% reported for the same quarter of FY22.
The vehicle manufacturer’s earnings dropped by 62% YoY to Rs. 5.84 billion in the first nine months of FY2023, while the topline fell by 33.6% from Rs. 203.4 to Rs. 135 billion. However, throughout the course of the nine-month period, the company’s other revenue climbed by 50.7% to Rs. 11.6 billion.
Toyota IMC reported EPS of Rs. 40.92 for the third quarter of FY23 and Rs. 74.35 for the ninth quarter of FY23.
As of the time of filing, the company’s stock price at the bourse was Rs. 955, up by 3.17% or Rs. 29.35, with a turnover of 3,497 shares on Wednesday.
Toyota IMC has been able to keep a profit despite lowering volumetric sales because of robust sales in the mid to top-tier automobile segments.
Toyota reported a 6% MoM rise in sales in March with 1,912 vehicles delivered. The Toyota Hilux, Fortuner, and Corolla models had particularly good sales.
Prices for these vehicles range from more than Rs. 6.1 million to Rs. 21 million.
Toyota IMC was able to continue operating profitably because of robust sales in the high-end auto category and a more effective manufacturing schedule than its primary rivals.
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