Toyota Indus Motor Company faces a big setback in FY 2019 - 20
ISLAMABAD - Toyota Indus Motor Company faces a big setback in FY 2019 - 20 with a loss of over Rs 4.6 billion.
Toyota Indus Motor Company (IMC) has announced its financial results for the half-year ended, December 31st, 2019.
The company posted a profit of Rs. 2.30 billion in the first half, down by 66.70% as compared to a profit of Rs. 6.91 billion in the same period last year. IMC’s net profit has declined due to a decrease in sales volumes.
According to the company, the marked decline in sales and profit for IMC was also a result of the devaluation of the Pakistani Rupee against the US Dollar.
The company’s net sales turnover for the first half of 2019-20 decreased by 44.05% to Rs. 42.77 billion as compared to Rs. 76.44 billion recorded in the same period last year.
However, the cost of sales of the company decreased by 41.24% to Rs. 39 billion as compared to Rs. 66.38 billion.
IMC has stated that the demand for automobiles declined significantly in Pakistan during the first half of the fiscal year 2019-2020, due to a slowdown in the economy, devaluation of the Pakistani rupee against the US Dollar, and various structural reforms and policies of the Government.
Combined sales of CKD and CBU produced by IMC-Toyota during the half-year ended December 31, 2019, stood at 14,453 units. This was down by 56% over 33,087 units for the same period in the previous year.