Pak Suzuki Motor Company (PSMC) – the country’s largest carmaker– has announced a net profit of Rs 3.82 billion for the year that ended on 31 December 2017, up by 38% compared to Rs 2.77 billion in the same period of previous year.
Earnings per share (EPS) increased to Rs 46.49 in 2017 compared to Rs 33.69 in the corresponding year.
Along with the results, the company also announced a final cash dividend of Rs 18.60 per share i.e. 186%.
The company saw record sales of Rs 101.81 Billion, up by a massive 33.07% as compared to Rs 76.51 billion in the previous year.
The increase in revenue was backed by higher off-take sales of (+20,019 units YoY), mainly driven by 84.24% YoY rise in Wagon-R/Cultus sales and due to the increase in the prices of the cars.
The gross profit increased to Rs 9.65 billion as compared to Rs 7.34 billion in the previous year.
Suzuki has continuously raised prices for its cars. On the other hand, it has such an established dealership network and spare parts market that consumers find it easier and cheaper to maintain a Suzuki car than perhaps those who import.
The difference in decline in sales of Suzuki Bolan and Suzuki Ravi is because both vehicles received excess orders the government’s taxi scheme last year.
In terms of growth, Suzuki Wagon R remained the most impressive variant with volumes reaching 17,671 units in 2017, up 82% year-on-year.
Recently, Pak Suzuki has Revised the prices of the automobiles twice in two months. In the end of December 2017, Pak Suzuki Motor Company Limited launched 4 new products, Cultus (auto gear shift), Mega Carry, GR 150 and GSXR 600.
PSMC’s share at the bourse closed at Rs 511.33 which, up by +3.95% with a turnover of 127,050 shares.
Pak Suzuki Motor Company Limited manufactures, assembles, and markets automobiles and motorcycles in Pakistan. It operates through two segments, Automobile and Motorcycles. The company offers Suzuki cars, pickups, vans, 4x4s, and motorcycles, as well as related spare parts.