Thursday, May 30, 2024

Toyota Pakistan Profit Increase by 38% to Rs. 4.45 Billion in First 3 Months of 2024

Indus Motor Company Limited (PSX: INDU) has recently disclosed its financial results for the first quarter of 2024, showcasing a remarkable surge in profitability compared to the same period last year.

The company’s profit after tax has experienced a substantial upswing, reaching an impressive Rs4.45 billion, marking a notable 38.3% increase from the Rs3.22 billion recorded in the corresponding quarter of the previous year.

This surge in profitability reflects positively on the company’s operational efficiency and strategic management decisions, contributing to enhanced shareholder value.

To share its success with shareholders, Indus Motor Company has declared an interim cash dividend of Rs34 per share, in addition to the interim cash dividend of Rs37.7 per share already distributed. This move underscores the company’s commitment to delivering value to its shareholders and maintaining investor confidence amidst its strong financial performance.

Despite a slight dip of 1.8% in revenue to Rs47.32 billion from Rs48.2 billion in the same quarter last year, Indus Motor Company managed to achieve significant cost optimization measures.

By implementing effective cost-saving initiatives, the company witnessed a remarkable 10.6% decrease in the cost of sales. This resulted in a substantial 128.5% increase in gross profit, soaring to Rs6.96 billion in Q1 2024. Such a significant improvement in gross margins, rising from 6.32% to 14.70% year-on-year, indicates the company’s adeptness in managing its production and operational expenses.

During the review period, Indus Motor Company experienced a notable uptick in other income, which surged by 35.3% to Rs4.11 billion. This boost in other income further bolstered the company’s overall profitability and financial resilience.

On the expenditure front, Indus Motor Company demonstrated effective cost management strategies, with administrative expenses decreasing by 10.3% to Rs524.07 million and other expenses witnessing a substantial 63.7% decline to Rs402.49 million.

The company managed to curtail its finance costs, which contracted by 28.9% year-on-year, amounting to Rs29.01 million compared to Rs40.81 million in the same period last year.

Amidst the positive financial performance, there was a notable increase in tax expenses, with the company incurring a higher tax expense of Rs3.16 billion compared to Rs1.62 billion in the corresponding period of the previous year.

This significant 94.7% year-on-year increase in tax expenses may reflect changes in tax regulations or higher taxable income, underscoring the need for strategic tax planning and compliance measures.

Indus Motor Company Limited’s robust financial performance in the first quarter of 2024 underscores its resilience, effective cost management, and strategic decision-making capabilities. With its strong financial foundation and commitment to delivering value to shareholders, the company is well-positioned for sustained growth and success in the competitive automotive industry.

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