Toyota Kirloskar net profit more than halves to Rs 188 cr in FY20
<p style="text-align: center;"><img title="1597731729766439.png" alt="7.png" src="/ueditor/php/upload/image/20200818/1597731729766439.png"/></p><p>Toyota Kirloskar has seen its net profit for 2019-20 more than halve at Rs 187.8 crore against Rs 408 crore in FY19 even as the Indian passenger vehicle market registered its steepest decline in a decade.<br/><br/>The maker of Innova and Fortuner SUVs posted more than 20% decline in its revenues last year at Rs 16,018 crore, according to its financial data sourced from Veratech Intelligence.<br/><br/>This was the second consecutive year when Toyota Kirloskar¡¯s profits more than halved. Also, this was the lowest profit registered by the company since FY14 and its lowest volumes in more than half a decade.</p><p><br/></p><p>Considered as financially prudent amongst global multinational corporations, Toyota Kirloskar saw its Ebitda margin for FY20 drop by more than 500 basis points year on year to 3.86%. One basis point is 0.01 percentage point.<br/><br/>A company spokesperson declined to comment on the financials, but said the last fiscal was difficult for the auto sector due to many factors, including a downturn in the economy, lack of availability of finance, high interest rate, low market sentiments, regulatory changes and the switchover from Bharat Stage 4 (BS4) emission norms to BS6.<br/><br/>In a market that declined 18%, Toyota Kirloskar registered a 24% fall in its annual volumes at about 114,000 units in FY20. But it overtook Honda Cars India to break into the top five carmakers in India. Toyota had a market share of 4.11% in FY20, 35 basis points less than the previous year.<br/><br/>This fiscal, according to the company spokesperson, April and May were lost months. June saw some recovery but demand flattened out in July. ¡°We are hopeful going forward the market recovers well, but it is too early to say to what extent the market will recover,¡± the person said. ¡°In the long term, next fiscal and beyond we are confident due to the strong fundamentals of the Indian economy the market will come back to normal.¡±</p><p><br/></p><p>Last fiscal, Toyota bore the brunt of low operating leverage, even as supply from Suzuki helped the company get incremental volumes.<br/><br/>Reviewing FY20, Toyota Kirloskar MD Masakazu Yoshimura, in the director¡¯s report, said Innova Crysta and Fortuner continue to be a segment leader across the country and during the year, the company successfully launched Glanza hatchback, the first Toyota-Suzuki alliance model in India.<br/><br/>This fiscal year, Toyota Kirloskar is preparing for export of service parts and accessories of cross badge vehicles and to launch the second cross badge vehicle based on Vitara Brezza ¨C the Urban Cruiser in India.<br/><br/>Yoshimura said the company will also manufacture small SUV vehicles on a contractual basis for Maruti Suzuki from 2022 for which preparations are ongoing.<br/><br/>During FY20, the company¡¯s dealer network remained stable at 374 dealerships. Toyota plans to expand the network in the coming year with more mainstream models set to join its portfolio. ¡°The company shall continue to improve its products, processes and services through employees, dealers and suppliers¡¯ participation and shall strive to increase the market share by consistent customer satisfaction and innovative marketing strategies,¡± Yoshimura said.</p><p><br/></p><p><br/></p><p><br/></p><p><br/></p>
18 Aug,2020
