Islamabad, Feb 28: Toyota Indus Motor Company (IMC) Limited has reported a significant surge in profitability, posting a Profit After Tax (PAT) of Rs. 4.87 billion for the second quarter of the financial year 2024-25, marking a 179 percent increase from Rs. 1.74 billion in the same period last year. For the first half of FY25, the company recorded a PAT of Rs. 9.96 billion, reflecting a 101 percent year-on-year growth, despite a 4 percent decline in quarterly profitability.
Alongside its earnings report, Toyota IMC announced an interim cash dividend of Rs. 37 per share, in addition to the previously paid Rs. 39 per share, maintaining a strong return to shareholders. The company’s net sales turnover for the quarter reached Rs. 43.3 billion, reflecting a remarkable 137 percent rise from Rs. 18.2 billion in the corresponding quarter of FY24. For the six-month period, sales surged to Rs. 84.88 billion, up from Rs. 50.91 billion last year, fueled by increased sales volumes of CKD and CBU vehicles, cost optimizations, and localization efforts.
Despite the revenue growth, gross margins dropped to 14.1 percent, compared to 7.8 percent last year, indicating pricing pressures and rising costs. The company attributed its profitability boost to higher volumes, lower input material costs, favorable exchange rate conditions, and disciplined cost management. Earnings from strategic investments also contributed to financial resilience.
Toyota IMC’s tax payments surged to Rs. 3.2 billion in Q2FY25, up from Rs. 598 million in the same quarter of the previous year. Earnings per share (EPS) climbed to Rs. 61.92, a substantial jump from Rs. 22.15.
Ali Asghar Jamali, CEO of IMC, credited the stable economic outlook, improved trade balance, and lower inflation for the auto industry’s positive momentum. However, he stressed the need for government intervention to sustain growth, urging measures such as lowering import duties, revising depreciation rates on used car imports, and easing auto financing restrictions.
Despite the strong financial performance, Toyota IMC’s stock (INDU) closed at Rs. 2,120, down by Rs. 28.57 or 1.33 percent, with a modest turnover of 1,235 shares on Friday, reflecting market volatility amid industry challenges.
