Toyota Kirloskar FY23 profits jump 2.7X to a record Rs 1404 crore
The company has posted its highest ever volumes, revenues, and profit margin since its inception 25 years ago and it is on track to produce over 3 lakh units in FY24.
Having delivered its best-ever sales performance in a decade, Toyota Kirloskar, the Indian subsidiary of the world's largest car maker Toyota Motor Corporation has posted its best operating performance with the highest ever profits and revenues in the country in FY23, twenty-five years since its inception.
Toyota Kirloskar Motor recorded a profit of Rs 1404 crore for FY23, which is almost 2.7 times higher than the Rs 518 crore profits it registered in FY22. The revenues for the last financial year grew 72 percent to Rs 34,021 crore. The company had a net profit margin of 4.13 percent again the highest ever by the company, as per the financials sourced from business intelligence platform Tofler.
Considering the overall financial performance during the year, the company’s directors recommended a dividend of Rs 261 crore during the year.Reviewing the year FY23, the directors' report noted that Fortuner continued to be the leader in its segment across the country. Toyota’s global model Hycross (CMPV) was introduced in the Indian market with Strong Hybrid technology and other advanced features like connected cars, ADAS (TSS) etc. were well received with a positive response from customers and the market at large.
The company is preparing to provide the first Cross badge model of CMPV to its alliance partner in the year 2023, added the note.
The model Invicto being shared with Maruti Suzuki has already got off to a resounding start with bookings of over 10,000 units already.
“The strategic alliance between Toyota and Suzuki has entered the second phase, where your Company has started manufacturing BSUV vehicles with Toyota’s strong hybrid technology and Suzuki’s vehicle design in both Toyota & Suzuki badges. In the current year, Toyota BSUV vehicle, Hyryder sales started in both domestic market and export market of Africa and Middle East,”the hdirector added.
The Japanese auto major continues to push towards multiple alternate powertrains as it seeks to reduce the carbon footprint of its vehicles in India.
With both Hycross and Hyryder with strong hybrid technology, Toyota Kirloskar believes it could popularize hybrid technology and work towards mass electrification. During the year, the Glanza CNG was also added to the product line up of your Company due to Alliance collaboration.
“Towards meeting national objectives, your Company is studying the introduction of Flex Fuel technology (Ethanol) in India. Your Company will continue to provide an “Awesome” experience to customers through technologically advanced products and further improve its products, processes and services by participation of its employees, dealers and suppliers,” said the note from the director.
The demand for Toyota Kirloskar models remains very strong and it has an order backlog of over 1 lakh vehicles with a majority of its production for FY24 also almost sold out.
Not surprisingly, the company has decided to add a third shift and is planning to increase its output by 30% during the year, which will take the total capacity to close to about 4 lakh units per annum.
Sources say, Toyota Kirloskar is likely to produce over 3 lakh units – its highest ever output in the country. The plant in Bidadi caters to both Toyota and Suzuki buyers in India and globally.
During FY23, the company’s dealer network increased to 577 touch points and the company has plans for further expansion in the coming year. The Company has also opened an exclusive dealer network for Lexus vehicles in 16 cities with a total of 16 touch points/dealerships, which is also on an expansion path.
HPCL plans to more than double its electric vehicle charging stations to 5,000 locations.
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