Toyota is tempering expectations for the coming fiscal year despite recently posting a record $24.61 billion profit for the year to March 31.

While speaking during the company’s quarterly earnings press conference, the car manufacturer revealed raw material costs could more than double from last year. It is also concerned with inflationary pressures and rising gasoline prices and as such, says it is difficult to make short-term forecasts.

“These factors will be compounded,” Toyota chief communications officer Jun Nagata said. “This fiscal year, it’s going to be even more difficult than other years to make a forecast.”

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Toyota added that soaring raw material prices will hit its profits particularly hard, with chief technology officer Masahiko Maeda noting that electrified vehicles will take a big hit. Maeda acknowledged that the car manufacturer will be “conservative” in passing along higher costs to customers with increased prices, noting that only select markets will accept price rises.

The car manufacturer expects to deliver 3.07 million electrified vehicles for the fiscal year through March 2023. Of these, approximately 2.85 million will be hybrids like the Prius and RAV4 Hybrid while BEVs will account for 95,000 sales.

Toyota’s recent profits were buoyed by favorable foreign exchange rates and lower marketing costs, helping it to offset increased costs for raw materials and logistics. However, chief financial officer Kenta Kon says the coming 12 months will be more difficult, noting that operating profit and net income will retreat. Kon added that Toyota will try to shield suppliers from increases in raw material prices by absorbing the extra costs, Auto News notes.

In the fiscal year to March 31, Toyota increased production by 6.2 per cent to 10.06 million vehicles while ramping up production to recover from output lost over the previous two years. Moving forward, the brand will slow production and take an “intentional pause” from April to June.