Last Tuesday, Pak-Suzuki Motor Company (PSMC) announced that its net profits fell by 53%, from Rs. 5.84 billion to Rs. 2.77 billion, compared to the same tiem period last year. Though, the company still managed to maintain 50 percent of the auto industry’s market share.
In 2015, the earnings per share (EPS) for the company were Rs.70.99 which decreased to Rs. 33.69 in 2016.
There was also a drastic decrease in the final cash dividend that the company announced. It fell from Rs.15 to Rs.5.50 per share.
At the Pakistan Stock Exchange, on Tuesday, the benchmark Karachi Stock Exchange (KSE) 100-share Index rose by 0.66% at 49,020 points while the Pak-Suzuki stock price closed up 0.12% at Rs. 666.85.
The company actually sold 27,254 units during the last quarter of 2016 which is a decrease of 26% year-on-year.
The Punjab government’s Apna Rozgar Taxi scheme resulted in a 21% growth year-on-year for Suzuki but after the normalization of the effects of these inflated sales volumes, the numbers are down again. Suzuki assembled 50,000 units of Suzuki Bolan and Suzuki Ravi for the taxi scheme which resulted in the extra sales in 2015.
The company’s overall sales were down by 18% in 2016 as compared to 2015. However, if taxi scheme sales are excluded 2015, the sales were actually 21% higher in 2016. Suzuki sold a total of 109,758 units in 2016.
Suzuki Wagon R emerged as the most impressive variant as far as growth is concerned. The sales volumes reached 13,209 units in 2016, up 75% year-on-year.
The fall in earnings came as a result of the 18% decline in overall sales volumes year-over-year. There was a 44% drop in sales of Suzuki Bolan and Ravi units mainly due to the termination of the taxi scheme.
According to JS Research report, higher input costs due to a 10% increase in the value of Japanese yen against dollar and nearly 16% increase in the cost of steel, the gross margins dropped 398 basis points to 9.6% in 2016.
Suzuki just go away Doo Daah doo daah
Let welcome Renault and Volkswagen Doo Daah Doo daah
Let’s sing this song all Doo day long
People are venting their frustration at Suzuki by not buying their crap,,,
The quality of their product is way cheap to spend on. Japan made imported cars are good alternative of what they offer in the same price bracket. They are just looting people by giving a scrap metal box in 8 lacs with tiny features.
Seems intentional. I recently booked a WagonR and was told that the waiting time is 6 months. They basically want to get the same incentives as the new entrants to the auto market.
BTW, this news is like a week old I think
Suzuki please evaluate your steps in the QC pricing in the region as the sub-continent. Basic Safety, Security of the vehicle is compromised. There’s no evidence of crash test obtained in Pakistan. Is there a bench which exist for the Crash Test Bench in Pakistan by the GOP, or the private sector. Does Suzuki has a Crash Test bench in Pakistan. How do you simulate the crash. Do you comply with Airbag as essential safety requirement by the UN resolutions for safety. Will you please reimburse the customers for your lie, and wrongs to naive Pakistan consumers.
Pateechar company
They must pay for their sins like overpricing and cheap quality vehicles. With all those imported cars available I was hoping that they will lower their prices but few months back they had the audacity to increase prices further. So this kind of thing was very much evident. I hope new entrants come into market with much better prices and these have no other option but to lower prices or go into history. Pakistan Auto industry is so much in bad shape right now.
GOOD… Die the slow death to your DOOM you effing P.o.S of a company…………
Na Pak suzuki
There are only two options left for Suzuki:
1. Keep producing overpriced junk and die a painful death.
2. Shake things up and start offering consumers value for their money to stay alive.
3. Leave the country and take all their sh**y cars with them
Spelling mistake in second line of first paragraph; written as ‘tiem period’ instead of time period.
Waatercauler aap ka howa
I don’t need your ‘waatercauler’, whatever that is. Go and offer it to the people who pointed out the spelling mistake in the name of Sima Kamil in the UBL CEO article.
Waatercauler is a special version of ‘water cooler’ for keyboard warriors and grammar gurus.
I don’t want to waste further time arguing with you but I will say some things. First of all the SPELLING mistake I pointed out has nothing to do with GRAMMAR so before calling me a grammar guru, look it up to see what it actually means. The same thing applies for keyboard warrior.
Secondly, my intention behind pointing out the mistake was to have it corrected asap as a mistake like that in the first few lines of an article does not leave a good impression on the readers.
Bhai mazak ko itna serious le gae aap tou.
Waatercauler choro ‘celfi stik’ aap ki hoe.
They are shy about introducing 800 CC automatic cars
As a matter of fact Suzuki Japan gets benefit of that
As we in Pakistan import used Automatic cars from Japan and consumer in Japan gets new one
So if Suzuki Pakistan looses, Suzuki Japan gets business in Japan, Japan Govt get rid of old cars by dumping them in countries like Pakistan
It’s a win win situation for sewing machine company like Suzuki.
Pak-Sazuki needs another Taxi Scheme :). Dont worry guys ganjo ka abi last year ha
Pak Suzuki, a Railu Katta company.
These blood suckers should be dragged on our streets….feeding Pakistan for the last 20+ years nothing but a box of cheap metal with four wheels.
Pak-Suzuki Motor Company …. Your Golden days gone ….
Kisi k nuqsaan pe khush hona to nahi chahiay lekn jaise inhoune khoun choosa hai hamari qoum ka, inkay nuqsaan pe to celebration banti hai.
Bechari Suzuki continuously dhmakiyaan de rhi hai Govt ko k kisi tarhan se issay bhi ‘New Auto Policy’ walay favor mil jaen.
Please leaveeeee…!!! Naa Pak Suzuki…!!!????
InshAllah next year they will go more down.
Jab loss mai jai ga mai chawal banto ga.