Toyota Indus Motors has reported its highest-ever net profit of Rs. 23 billion for the financial year 2024-25. This marks a 53 percent increase compared to Rs. 15.07 billion earned in the previous year. Earnings per share (EPS) also rose significantly, reaching Rs. 292.74 from Rs. 191.76 in FY24.
The strong profit growth was driven by a 41 percent rise in net sales, which totaled Rs. 215.1 billion. Toyota Indus also saw a 61 percent increase in gross profit, amounting to Rs. 31.2 billion. Pre-tax profit followed the same trend, climbing 61 percent to Rs. 37.7 billion.
Despite the impressive full-year results, Toyota Indus’ fourth-quarter performance was slightly below expectations. The company posted a quarterly profit of Rs. 6.4 billion, which was up 14 percent year-on-year but down 2 percent from the previous quarter. This decline was mainly due to lower gross margins.
Gross margins dropped to 13.3 percent in the fourth quarter, compared to 14.2 percent in the same quarter last year and 16.9 percent in the previous quarter. Analysts say this decline is linked to a change in the sales mix. More units of Corolla, Yaris, and Cross variants were sold, while sales of higher-margin models like Fortuner and Hilux decreased. Additionally, the increasing share of Chinese pickups and SUVs affected profit margins.
On a yearly basis, Toyota Indus improved its gross margins to 14.5 percent, up from 12.7 percent in FY24.
The company announced a final cash dividend of Rs. 50 per share, raising the total dividend payout for the year to Rs. 176 per share.
Other income fell 6 percent to Rs. 14.95 billion, and the effective tax rate increased to 39 percent in FY25. Customer advances reached Rs. 34 billion, the highest level in two and a half years.
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