The country’s second largest automobile maker’s net profit stood at Rs2.74 billion compared with the preceding year’s Rs3.44 billion, according to a notice sent to the Karachi Stock Exchange on Wednesday.
Gross margins declined by 120 basis points to 6.6% from 7.8% in fiscal 2010 due to rupee depreciation against the Yen and dollar, said Topline Securities analyst Furqan Punjani.
The company’s net profit was much ahead of market expectation as analyst expected the bottom-line to stand, on average, around Rs2.1 billion.
The result was accompanied with a final cash dividend of Rs10 per ordinary share of Rs10, taking the total financial year 2011 payout to Rs15.
Other income fell 16 per cent to Rs1.51 billion mainly due to lower cash balance on the back of decline in advances from customers.
The company’s net sales increased by three per cent to Rs61.7 billion in the period under review due to higher prices and not increase in number of cars sold. Car prices increased on average by seven to eight per cent during financial year 2011.
Sales of Toyota Corolla – the highest selling car of the outgoing financial year – fell six per cent while sale of Cuore and Hilux witnessed a substantial rise of 13% and 44% during the period under review, respectively.
The company paid tax at an effective rate of 32% while company had paid tax at the rate of 34% last year.
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