Toyota Pakistan Reports Rs15.07 Billion Profit After Tax for 2023-24

Indus Motor Company Limited (IMC), the manufacturer of Toyota vehicles in Pakistan, has announced its financial results for the fiscal year ending June 30, 2024.

The company’s net sales turnover for the year decreased by 14% to Rs152.48 billion, compared to Rs177.71 billion in the previous year, mainly due to a decline in sales volumes.

Despite a challenging business environment, IMC increased its profit after tax by 36%, reaching Rs15.07 billion, up from Rs9.66 billion the previous year. This increase was primarily driven by lower input material costs due to favorable exchange rate movements, cost-cutting measures, and greater localization of parts.

During the year, the company launched the Toyota Corolla Cross, the first locally manufactured Hybrid Electric Vehicle (HEV) in Pakistan, featuring the highest level of localized content. This launch also contributed to the positive financial results. Additionally, returns on deposits and investments continued to play a significant role in the company’s profits, benefiting from higher interest rates.

Ali Asghar Jamali, CEO of IMC, commented, “This year has seen substantial progress in improving the trade balance, reducing imports, and curbing inflation towards the end of the year. The company has navigated numerous economic challenges, including persistent inflation, high interest rates, and decreased consumer purchasing power. In response, we implemented aggressive productivity improvements and adjusted our sales mix to better align with market demand, particularly by focusing on the localization of Hybrid Electric Vehicles.”

He added, “In line with our commitment to boosting localization, the Board of Directors has approved an investment of Rs4 billion over the past year to develop local parts and advance the ‘Make in Pakistan’ initiative.”

IMC called on the government to create a supportive environment that encourages growth and localization within the automotive sector. They emphasized the importance of allowing the industry to operate at full manufacturing capacity and implementing tax reductions to enhance product affordability and protect the jobs of over 2.5 million direct and indirect workers in the auto sector.

Based on the financial results, the Board of Directors declared a final dividend of Rs43 per share, bringing the total annual dividend for the year to Rs114.70 per share.