Toyota Indus Motor’s Profit Sees Massive 179% Increase in Q2 FY25

Toyota Indus Motor Company (IMC) Limited has posted a Profit After Tax (PAT) of Rs. 4.87 billion for the second quarter that ended on December 31, the financial year 2024-25, up by 179 percent as compared to a profit of Rs. 1.74 billion in the same period last year. For 1HFY25, the company posted a PAT of Rs. 9,957 million (EPS: Rs. 126.7), increasing by 101% YoY. However the profitability declined by 4 percent QoQ. Along with the result, the company has also announced an interim cash dividend of Rs. 37 per share. This is in addition to the first interim cash dividend already paid at Rs. 39 per share, i.e. 390 percent. Net sales of the company decreased by 137 percent to Rs. 43.3 billion as compared to Rs. 18.2 billion in 2QFY24. The Company’s net sales turnover for the six-month period ended December 31, 2024, surged to Rs. 84.88 billion, up from Rs. 50.91 billion in the corresponding period last year. This significant increase was primarily driven by higher sales volumes of CKD and CBU vehicles, alongside improvements in cost efficiencies and localization efforts. Gross margins fall to lowest-ever levels of 14.1 percent compared to 7.8 percent in the same period last year. The impressive profitability growth is attributed to increased volumes, lower input material costs, favorable exchange rate movements, and optimized cost management initiatives. Additional earnings from investments also played a key role in strengthening the Company’s financial position. The company paid Rs. 3.2 billion in taxes in 2QFY25 against Rs. 598 million recorded in the same quarter last year. Toyota IMC posted earnings per share (EPS) of Rs. 61.92 as opposed to EPS of Rs. 22.15. Ali Asghar Jamali, Chief Executive Officer of IMC, commented, “This half of FY 2024-25 has been marked by a stable economic outlook, improved trade balance, and lower inflation, which have positively impacted the auto industry. While these developments are encouraging, challenges remain due to high taxation and duties that continue to affect vehicle affordability. We urge the government to introduce policy measures such as reducing import duties, rationalize the depreciation rates on used car imports, and ease the restrictions on auto financing to facilitate market expansion and further boost local manufacturing.” At the time of filing, INDU’s scrip at the bourse was closed at Rs. 2,120, down by Rs. 28.57 or 1.33 percent, with a turnover of 1,235 shares on Friday.