At this time last year, the company made a profit of Rs4.80 billion (Rs61.08).
During the second quarter of fiscal year 2022, profitability soared 61 per cent to 4.75 billion (EPS: Rs60.43) compared with Rs2.95 billion (EPS: Rs37.60) during the same period last year. The big rise in profitability is because there was a lot of demand in anticipation of a price rise.
During the second quarter of fiscal year 2022, the net sales of the company surged by 53 percent on a year-on-year basis to Rs69.6 billion, owing to an impressive jump in volumetric sales of 19,426 units, up 35 percent year-on-year amid high demand in the month of December 21 due to consumers’ anticipation of a price hike, coupled with an upward revision in prices of 3 percent on a year-on-year basis.
The Fortuner (up 135 percent year on year), which recently received a facelift, and the popular sedan Corolla (up 93 percent year on year) remained major contributors.
For the aforementioned reasons, this contributed to an increase of 69 per cent to Rs135.2 billion in the revenue during the first half of fiscal year 2022 compared to Rs79.6 billion during the same period last year.
The margins of the company during the quarter witnessed a slight dip to 7.56 percent, compared with 8.19 percent during the same period last year, as cost pressures emanating from rupee depreciation and high steel prices offset the impact of a robust jump in the topline,” an analyst at Arif Habib Limited said.
On a quarterly basis, the gross margins came down by 323bps to 7.56 per cent, as an outcome of increased cost pressure due to rupee depreciation, the high price of raw materials together with inflated freight charges.
Other income was Rs 2.502 billion in the second quarter of fiscal year 2022, up 81 percent year on year and 22 percent quarter on quarter due to higher interest income on short-term investments and cash balance.
The INDU booked effective taxation at 26.29 percent during the second quarter of fiscal year 2022, as compared with 28.69 percent during the same period last year.