The Board of Directors of Toyota Indus Motor Company (IMC) Ltd. met yesterday to review the company’s financial and operating performance for the year ended June 30, 2018.
The company posted net sales revenue of Rs. 140.2 billion, up by 25% as compared to Rs. 112.27 billion last year, while profit after tax grew by 21% to 15.8 billion from Rs. 13 billion posted last year and profit before tax grew by 20% from Rs. 19.1 billion last year to Rs. 23 billion in the year ended.
The overall increase in the revenue and net profits is attributed to higher sales volume on account of the launch of new models, change in sales mix and higher other income owed to an increase in fund size.
Demand momentum for automobiles remained solid throughout the period, due to increased spending power, despite rising fuel prices and accessibility to reasonably priced auto financing. The company produced 62,886 units, up by 5% compared to 59,945 units last year.
Keeping in view the sustained growth in demand year on year, the Board of Directors approved a new investment of PKR 3.3 Billon to further enhance vehicle manufacturing productivity, which is expected to result in the capacity increase to 76,000 units per annum by 2020-21.
This plan will take the overall investment by the company to around PKR 7 Billion on an improvement of production volumes.
The combined sales of Toyota CKD and CBU vehicles stood at 64,000 units, up by 5.7% compared to 60,586 units in the previous year. In spite of the increased volume, IMC’s market share declined from 28% to 24%, mainly due to overall market expansion and growth.
The sales for Toyota Corolla 2017 stood at 51,412 units for the period, down by 2.4%, compared to 52,676 units last year. Toyota Hilux was launched in February 2018, with minor improvements. The combined sales of Hilux LCVs grew 27.5% to 7470 units compared to 5860 units sold during the same period last year.
In March 2018, Toyota Fortuner underwent a minor model change and another variant of a diesel engine was launched. This resulted in increased sales of 4186 units, up 204% compared to 1375 units last year. Camry Hybrid Vehicle was also an addition to the product line-up this year.
Toyota Indus has also launched the Toyota Corolla XLi Automatic variant and planning to unveil Toyota Rush in coming months, but next year report will tell us that how the consumers take these new products.
Based on the results, the Board of Directors announced a final dividend of PKR45 per share, making the annual dividend for the year PKR 140 per share.
During the year, Toyota Indus contributed a sum of Rs. 48 billion to the national exchequer, which amounts to about 1% of the total revenue collection by the Government of Pakistan for the year.