After an update narrating Toyota Indus Motors’ (IMC) profit growth, here is another news from the company. IMC, a leading automobile manufacturer in Pakistan, has announced a temporary suspension of production operations at its plant. This decision, effective from October 29 to 31, 2024, is due to ongoing supply chain disruptions and a shortage of essential components.
The company has cited low levels of raw material and component inventory as the primary reason for the production halt. These supply chain challenges have hindered the company’s ability to meet its production targets.
While the exact duration of the production suspension remains to be seen, it is likely to impact the availability of Toyota vehicles in the Pakistani market. As the global automotive industry continues to grapple with supply chain issues, manufacturers like IMC are taking steps to manage these challenges and ensure the smooth operation of their businesses.
IMC Profit Growth
Toyota Pakistan has reported a significant increase in its financial performance. The company’s profit after tax (PAT) surged by 58% year-on-year, reaching Rs. 5.1 billion.
To share this success with its shareholders, IMC has announced a substantial cash dividend of Rs. 39.0 per share.
Net sales for the quarter increased by 27% year-on-year, reaching Rs. 41.6 billion. This growth was primarily driven by increased sales of the Corolla and Yaris models. However, a 16-day plant shutdown led to a 23% quarter-on-quarter decline in revenue.
The company’s gross profit margin improved to 13.4% from 10.1% in the same period last year. This increase was supported by a stable Pakistani rupee against the US dollar and better margins on the Corolla Cross.
Despite this, the gross margin declined on a quarter-on-quarter basis due to a higher sales mix of lower-margin sedan models.
What do you think about the updates received from local car maker, Toyota Indus Motors (IMC)? Drop your thoughts in the comments section.
