Toyota Indus Motor Posts 75% Surge in Profit

Toyota Indus Motor Company (IMC) has reported an impressive 75% increase in its profit-after-tax (PAT) for the first nine months of the 2024-25 financial year, recording a robust Rs16.55 billion—up from Rs9.41 billion in the same period last year.

This significant rise in profitability was accompanied by a sharp increase in earnings per share (EPS), which climbed from Rs119.67 to Rs210.62 year-on-year. IMC also declared a third interim cash dividend of Rs50 per share, up from Rs34 per share previously, signaling shareholder confidence and financial strength.

Strong Sales Performance

The company’s stellar financial performance is underpinned by a 57% increase in total vehicle sales, with 21,890 units of Completely Knocked Down (CKD) and Completely Built Units (CBU) sold, compared to 13,922 units in the corresponding period last year.

Key contributors to this growth include the Toyota Corolla Cross and Toyota Yaris, which continue to gain consumer traction thanks to timely feature upgrades and product improvements.

Revenue Growth and Operational Efficiency

IMC’s net sales revenue soared to Rs145.53 billion, a significant increase from Rs98.23 billion the previous year. The company credits this gain to stable input costs due to a favorable exchange rate, improved localisation efforts, and effective cost management strategies.

CEO Ali Asghar Jamali attributed the company’s success to a combination of lower interest rates, rising consumer confidence, and stable foreign exchange rates. He further called for policy reforms to address the depreciation allowances on used car imports, which he says hinder the competitiveness of local manufacturers.

Used Car Imports Remain a Challenge

Despite IMC’s strong performance, imported used cars continue to hold a substantial share of the market. During the reporting period, used car imports rose 6%, reaching 29,590 units, up from 27,859 units in the previous year. These imports accounted for 29% of the auto market by value, sparking concerns about their long-term impact on domestic production.

Looking Ahead

Toyota Indus Motor remains focused on innovation, customer satisfaction, and supporting Pakistan’s automotive industry. The company is actively working on enhancing localisation and advocating for fair market policies to drive sustainable growth.

Afsheen Gohar

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