Toyota Indus Motors Posts 56% Profit Growth for FY24

Indus Motor Company (INDU) announced its 4QFY24 result today, where the company recorded a profit of Rs. 5.7 billion, up 48 percent YoY compared to Rs. 3.8 billion in the same period last year. This takes FY24 earnings to Rs. 15.1 billion compared to FY23 profit of Rs. 9.7 billion, up 56 percent YoY. INDU announced a final cash dividend of Rs. 43 per share, taking the total FY24 payout to Rs. 114.7 per share. Net sales rose by 27 percent YoY and 15 percent QoQ to Rs. 54.2 billion in 4QFY24, driven by an increase in units sold, which reached 7,069 units in 4QFY24 compared to 6,503 units in 3QFY24 and 5,512 units in 4QFY23, according to Topline Securities. Gross margins stood at 14.2 percent for 4QFY24, slightly below expectations. This represents a decrease from 18.1 percent in 4QFY23 and 14.7 percent in 3QFY24. The decline in gross margin was primarily due to car price reductions towards the end of 3QFY24. On a YoY basis, Gross Profits remained flattish to Rs. 7.7 billion in 4QFY24. Distribution expenses surged by 281 percent YoY but declined by 21 percent QoQ to Rs2bn in 4QFY24. Meanwhile, administrative expenses increased by 36 percent YoY and 77 percent QoQ to Rs. 929 million in 4QFY24. Other income increased by 68 percent YoY and 3 percent QoQ to Rs. 4.2 billion in 4QFY24. However, for FY24, other income totaled Rs. 13.7 billion, marking a 4 percent YoY decline. The effective tax rate stood at 32 percent for 4QFY24, compared to 42 percent in 3QFY24 and 57 percent in 4QFY23. INDU posted earnings per share (EPS) of Rs. 72.09 for 4QFY24 and an EPS of Rs. 191.76 for FY24. At the time of filing, the auto-assembler’s scrip at the bourse was Rs. 1,779.99, up 3.33 percent or Rs. 57.4 with 588 shares on Monday.