Toyota Indus Motors Posts Highest-Ever Annual Profit of Rs. 23 Billion in FY25

Indus Motor Company Limited (INDU) reported a highest ever net profit of Rs. 23 billion for the financial year 2024-25 (FY25), marking a 53 percent increase compared to Rs. 15.07 billion earned in FY24. Earnings per share (EPS) rose to Rs. 292.74 from Rs. 191.76. According to the company’s financial results, released on Friday, profitability was driven by a 41 percent jump in net sales, which reached Rs. 215.1 billion. Gross profit also surged 61 percent year-on-year to Rs. 31.2 billion, while pre-tax profit rose 61 percent to Rs. 37.7 billion. Despite the strong full-year performance, fourth-quarter results were weaker than industry expectations. The company posted a quarterly profit of Rs. 6.4 billion (EPS: Rs. 81.88), up 14 percent year-on-year but down 2 percent compared to the previous quarter, due to lower gross margins. Gross margins slipped to 13.3 percent in 4QFY25, compared to 14.2 percent in 4QFY24 and 16.9 percent in 3QFY25. Analysts attribute the decline to a sales mix shift towards higher volumes of Corolla, Yaris, and Cross variants, while relatively fewer Fortuner and Hilux units were sold. A rising share of Chinese pickups and SUVs also weighed on margins, according to Topline Securities. On a full-year basis, gross margins improved to 14.5 percent, up from 12.7 percent in FY24 INDU announced a final cash dividend of Rs. 50 per share, bringing the full-year payout to Rs. 176 per share. Other income, however, fell 6 percent year-on-year to Rs. 14.95 billion, while the company’s effective tax rate for the year increased to 39 percent. At the end of FY25, advances from customers stood at Rs. 34 billion, 2.5 years high.