Pak Suzuki Motor Company (PSMC), the country’s largest car maker in terms of market share, revealed its 3rd quarter earnings of Rs. 1.1 billion which is up by a massive 152.18% as compared to Rs. 438 million after tax in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.
This resulted in an EPS of Rs. 13.43 as compared to Rs. 5.32 in the same period last year. Quarterly the gross profit was up by 108% as the sales boosted the profit in this quarter.
The expected increase in earnings is due to high sale volumes, as the company’s volumetric sales increased 30% YoY and 12% QoQ.
PSMC, that controls 54 percent of the cars and pickups market, is witnessing remarkable growth in sales for Mehran, WagonR and New Cultus which competes with several imported varieties making up 70% of the total sales volume.
PSMC sold 32,777 units in Q3 2017, where Mehran sales touched 10,516 units and Suzuki Wagon R remained the most impressive with 5,789 units, up 77% YoY.
Cultus, with its steeper price, also saw a 56 percent growth in this quarter which has surprised many. Local cars are often preferred by consumers as they are tried and tested with a stronger and cheaper spare part market with good resale value.
Suzuki is also importing the SUV Vitara and Ciaz in the sedan category to test the market but sales numbers are not available to us.
It also announced its profit for the nine months ended September 2017, which was up by 65.24% to Rs. 3.09 billion as compared to Rs. 1.87 billion in the same period last year.
This translated into earnings per share (EPS) of Rs. 37.63 as compared to an EPS of 22.77 during the same period last year.
The result was in line with the expectations of the market. At the time of filing this report the share price of Pak Suzuki was down by 1.59%, trading at Rs. 488.55.