UTS Operating Income Plunged by 52% in FY 2022/23

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The business of United Traders Syndicate (UTS), the authorized distributor of Toyota Motor Corporation has slumped by 52 percent in FY 2022/23. According to credit rating agency, CareRatings, the operating income of UTS plunged to Rs 3.65 billion in FY 2022/23 compared to Rs 7.61 billion in FY 2021/22. The operating income declined on account of import restrictions affecting demand in the first half of FY 2022/23 in addition to sluggish demand scenarios across the automobile sector in FY2022/23. The restriction in automobile imports resulted in a significant dip in the quantity of Toyota vehicles sold to 251 units during FY2022/23 from 550 units during FY2021/22. The decline in the scale of operations coupled with increased finance costs in FY2022/23 amid elevated interest rates led to a decline in profitability. Net profit was Rs 4 million in FY2022/23, much lower than net profit of Rs 390 million in FY 2021/22. 

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