Indus Toyota’s Annual Profit Exceeds Rs. 15 Billion Despite 90% Decline in Last Quarter

Toyota Indus Motor Company (IMC) has released its financial results for the fiscal year ending June 30th, 2022.

On August 30, 2022, the Board of Directors of Indus Motor Company Ltd. (IMC) met to review the Company’s financial and operating performance for the fiscal year ended June 30, 2022.

During the year, the company earned Rs. 15.80 billion, a 23.24 percent increase over the previous year’s profit of Rs. 12.82 billion. In addition to the result, the company declared a cash dividend of Rs. 3.25 per share.

However, earnings fell by 88 percent year on year and 90 percent quarter on quarter in the last quarter. The massive drop in profit was caused by lower gross margins and increased taxation due to the imposition of super tax.

Indus Motors recorded an effective taxation rate of 88 percent in 4QFY22, demonstrating the company’s significant impact from super tax.

The company reported net sales revenue of Rs. 275.50 billion, a 54% increase from Rs. 179.16 billion the previous year. The sales increase was due to an increase in volumetric sales (Corolla and Yaris up 30%, Fortuner and Hilux up 70%) as well as multiple price increases throughout the year.

The cost of sales increased by 58.22 percent, standing at Rs. 257 billion versus Rs. 162 billion.

However, gross margins fell sharply to 6.68 percent in FY22, from 9.3 percent in FY21, due to increased inflation, a massive increase in imported raw material prices (particularly steel prices), and rupee depreciation.

Other income increased 132 percent to Rs. 12.93 billion during the year, compared to Rs. 5.79 billion the previous year, due to a higher cash balance from increased order intake. The company’s earnings per share increased to Rs. 201.04 from Rs. 163.21.

On Tuesday, INDU’s stock closed at Rs. 991.43, down Rs. 28.66 or 2.88 percent on a turnover of 10,179 shares.

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