Toyota Kirloskar net more than halves

Mumbai: Toyota Kirloskar has seen its net profit for 2019-20 more than halve at ₹187.8 crore against ₹408 crore in FY19 even as the Indian passenger vehicle market registered its steepest decline in a decade.

The maker of Innova and Fortuner SUVs posted more than 20% decline in its revenues last year at ₹16,018 crore, according to its financial data sourced from Veratech Intelligence. 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.

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.

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-IV (BS-IV) emission norms to BS-VI.

In a market that declined 18%, Toyota Kirloskar registered a 24% fall in its annual volumes at about 114,000 units in FY20.