Toyota Pakistan reports 101 per cent surge in half-year profit

ISLAMABAD: Toyota Indus Motor Company Limited (INDU) has recorded an impressive 101 per cent increase in its post-tax profit for the six months ending on December 31, 2024, bringing its profit to Rs10 billion, up from Rs5 billion in the same period of 2023.

The company has also declared a second interim cash dividend of Rs37 per share (370 per cent) for the quarter ending December 31, 2024. This follows an earlier dividend of Rs39 per share (390 per cent) already distributed.

Earnings per share (EPS) for the period reached Rs126.69, more than doubling from Rs63.07 in the same timeframe last year.

The significant boost in profitability was driven by a strong rise in revenue and other income, despite higher taxes and operational costs. Revenue from customer contracts surged by 66.7 per cent, climbing to Rs85 billion from Rs51 billion the previous year, thanks to robust sales growth.

At the same time, the cost of sales saw a 58.4 per cent rise, amounting to Rs73 billion, which resulted in a gross profit of Rs11.7 billion – a substantial 147.7 per cent year-on-year growth.

While administrative expenses increased by 23.6 per cent to Rs1.5 billion, and other operating expenses surged by 197.4 per cent to Rs154.5 million, the company’s operational profit still soared by 297 per cent, reaching Rs8 billion.

Additionally, other income witnessed a 54 per cent rise, totalling Rs8 billion, contributing to an overall income of Rs16.5 billion – an impressive 123 per cent increase from last year.

Though finance costs climbed by 59.7 per cent to Rs99.5 million, this had little effect on the overall profitability. The company’s pre-tax profit stood at Rs16.4 billion, marking a 127.4 per cent rise. Despite a 186 per cent jump in taxation expenses to Rs6.4 billion, the company maintained a strong profit after tax.

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