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Toyota posts first loss in 5 years on slow sales

Toyota Kirloskar Motor experienced its fiscal 2021, as the makers of the Innova and Fortuner sold fewer vehicles in the pandemic-hit year that saw an increase in costs. Read the details:

New Delhi: Toyota Kirloskar Motor experienced its fiscal 2021, as the makers of the Innova and Fortuner sold fewer vehicles in the pandemic-hit year that saw an increase in costs. 

This was the third consecutive year of the local unit of Japan’s Toyota Motor recorded a lower bottom line on year, even as it rejigged buisness plans that include cross-badging vehicles with Maruti Suzuki in India.

Toyota Kirloskar posted a net loss of Rs 55 crore for the year ended March 31, comapared with a net profit of Rs 187 crore the year before, according to the company’s filing with the Ministry of Corporate Affairs, shared with ET by buisness research platform Tofler. Revenue dropped 16% to Rs 13,181 crore. 

The fall in sales, elevated fixed cost and lower margin on the products sourced from Maruti Suzuki weighed  on the operating margin, which shrank to 1.97% from an average of 7.13% for the previous four years. Operating profit per car dropped to Rs 27,832, which was 25% less compared with that of local market leader Maruti Suzuki.

first published:Oct. 21, 2021, 6:39 p.m.

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