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For the quarter ending March 31, calendar year (CY) 2022, Pak Suzuki Motor Company Limited (PSMC) reported a loss after tax of Rs. 460.22 million. The automobile maker made a profit of Rs. 778 million during the same time last year.
The losses were caused by a rise in finance charges, a steep drop in other revenue, and a greater cost of manufacturing, according to the automaker's financial statements.
However, the company's net sales increased by 32% YoY to Rs. 47.736 billion in 1QCY22 from Rs. 36.098 billion the previous year, owing to higher volumetric sales and upward revisions in car prices.
Despite flattish gross margins sequentially, the loss was unexpected, with the major deviation coming from higher than expected finance costs and lower than expected other income.
During the period under review, the company's gross margins decreased by 3.29 percent YoY to 2.83 percent. Higher cost pressure (primarily freight and steel prices) and currency depreciation contributed to the decline.
Gross profits fell by 39% to Rs. 1.349 billion in the same period last year, from Rs. 2.209 billion. Similarly, the company's other income decreased by 15% to Rs. 527 million from Rs. 619 million due to lower cash and cash balances income.
The company's financing costs increased by 312 percent year over year to Rs. 1.031 billion million, owing to factors such as increased payments on late deliveries, growth in customer advances, and exchange rate losses.
The company reported a loss of Rs. 5.59 per share, compared to a profit of Rs. 9.45 per share in the same period last year.
On Tuesday, PSMC's stock closed at Rs. 200.49 on the stock exchange, down Rs. 12.21 or 5.74 percent, with 152,043 shares traded.