Toyota Pakistan’s Profits Increased 58% in Q1 FY2025

Indus Motor Company Limited (PSX: INDU) announced earnings (PAT) today for 1QFY25 at Rs. 5.1 billion (EPS: Rs. 64.77), depicting an increase of 58 percent YoY (1QFY24 EPS: Rs. 40.91). Alongside this, the company announced a cash dividend of Rs. 39.0/share. Net sales during 1QFY25 clocked in at Rs. 41.6 billion in contrast to Rs. 32.6 billion in SPLY, depicting an increase of 27 percent YoY. According to Arif Habib Limited, this was driven by higher volumetric sales; 6,160 units in 1QFY25 compared to 4,511 units in SPLY. On a sequential basis, the revenue declined by 23 percent QoQ, due to lower volumetric sales (4QFY24: 7,069 units) amid plant shutdown of -16 days during the quarter. Gross margins for 1QFY25 are recorded at 13.4 percent, up from 10.1 percent YoY, primarily due to a stable PKR-USD parity and better margins on the Corolla Cross. On a sequential basis, gross margins saw a slight decline due to a shift in the sales mix, with a higher number of sedan models like the Corolla and Yaris being sold compared to the Corolla Cross during the quarter. Other income increased by 58 percent YoY to clock in at Rs. 4.5 billion in 1QFY25, owing to higher cash and cash equivalents and short-term investments. Finance cost increased by 98 percent YoY to clock in at Rs. 62 million in 1QFY25, primarily due to an increase in short-term borrowings. The company booked effective taxation at 39 percent in 1QFY25 vis-à-vis 35 percent in SPLY.