Islamabad, 28 Apr, 2025: Toyota Indus Motors has announced impressive financial results for the nine months ending March 31, 2025 (9MFY25).
The company reported a substantial Profit After Tax (PAT) of Rs. 16,555 million, representing a remarkable 76% year-on-year increase. This translated into Earnings Per Share (EPS) of Rs. 210.62.
Exceptional Growth in Third Quarter Results
For the third quarter, covering January to March 2025, Toyota Indus Motors recorded a profit of Rs. 6,597 million, marking a 48% increase compared to the same period last year.
Additionally, the quarter-on-quarter profit growth stood at 36%. This strong performance reflects both an increase in sales and effective cost management.
To further reward shareholders, the company declared a cash dividend of Rs. 50 per share for the third quarter, bringing the total payout for the nine months to Rs. 126 per share.
Significant Surge in Net Sales and Volumes
The company achieved net sales of Rs. 145,532 million during 9MFY25, representing a 48% increase compared to the previous year.
In the third quarter alone, revenues rose by 28% year-on-year and 40% quarter-on-quarter.
READ MORE: Toyota Indus Motors Halts Production
This surge in revenue was largely driven by a 40% increase in sales volume, which reached 9,077 units.
Key models like the Yaris, Corolla, and Corolla Cross saw a 16% increase in sales, while the Fortuner and Hilux posted an extraordinary 159% year-on-year volume growth.
Margin Improvements and Income Trends
Toyota Indus Motors’ gross margin for the third quarter reached 16.9%, up from 14.7% in the previous year and 14.1% in the preceding quarter.
This improvement in profitability was driven by the higher sales volumes, which brought about economies of scale.
The shift in the sales mix, with a greater share of higher-priced models such as the Fortuner and Hilux, further contributed to the margin expansion.
However, the company’s other income declined by 32% year-on-year to Rs. 2,791 million, primarily due to lower interest rates during the reviewed period.
Despite this, Toyota Indus Motors managed to reduce its effective tax rate to 38.9%, down from 41.5% in the same quarter of the previous year.
Market Outlook and Stock Performance
The brokerage community has a Buy recommendation on Toyota Indus Motors, with a target price of Rs. 2,459.70 per share for December 2025.
READ MORE: Toyota Indus Motors Temporarily Suspends Production
Currently, the company is trading at attractive valuations, with a Price-to-Earnings (P/E) multiple of 7.1x for FY25 and 5.5x for FY26, suggesting strong growth potential.
