Toyota Pakistan’s Profit Soars By 89% in FY24

• Toyota Pakistan reveals strong financial performance for FY24 H1.
• FY24 Q2 sees a 31% increase in profitability to Rs. 1.74 billion.
• Indus Motors announces a cash dividend of Rs. 13.2 per share.

Today, Toyota Pakistan unveiled strong financial performance for the first half of fiscal year 2024. The company reported a profit after tax of Rs. 4.95 billion, showcasing a significant 89% rise compared to the previous year.

This strong performance highlights the company’s resilience and adaptability in the face of challenging market conditions.

Profitability Highlights

During the second quarter of FY24, the company’s profitability surged to Rs. 1.74 billion, marking a 31% increase from the previous year. Additionally, Indus Motors announced a cash dividend of Rs. 13.2 per share, totaling Rs. 37.70 per share for the first half of FY24, which is expected to boost investor confidence.

Despite the impressive profitability, there was a considerable drop in net sales during the first half of FY24, amounting to Rs. 50.910 billion, reflecting a significant 41% decline compared to the previous year. This decrease was even more pronounced in the second quarter, with net sales plunging by 63% year-on-year and 44% quarter-on-quarter.

The main factor contributing to this decline was the decrease in volumetric sales, notably seen in Fortuner and Hilux sales, which experienced a substantial 83% year-on-year drop.

Despite facing challenging sales figures, Indus Motors achieved a significant improvement in its gross margins. In the first half of FY24, the gross margin reached 9.3 percent, which is a notable contrast to the -3.3 percent reported during the same period last year.

Toyota Pakistan’s Rs. 3 billion investment

Indus Motor Company Limited (INDU) is taking significant steps to increase the localization of vehicle parts and components, investing approximately Rs. 3 billion. This strategic decision, approved by the Board of Directors, demonstrates the company’s dedication to minimizing foreign exchange outflow and strengthening the local auto industry.

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The investment will mainly target the expansion of localizing various existing vehicle models, in line with the company’s long-term goals.

The investment covers costs related to plant infrastructure, machinery, molds, dies, and other necessary expenses for localizing parts and component production. The targeted completion by the third quarter of 2025 signals a diligent timeline for implementation.