Pak Suzuki Motor Company Limited’s (PSMC) profits declined 30.8% to Rs 904.14 million in the quarter ended March 31 2018
The car manufacturing firm booked a profit of Rs 1.30 billion in the same quarter of the previous year.
Earnings per share fell down to Rs 10.99 from Rs 15.88 in the corresponding period.
The gross profit in absolute terms has registered a decrease of 10% YoY at Rs 2.6 Billion in 1QCY18.
The company didn’t announce any cash dividend.
The company’s Net sales were up by 31.9% to Rs 31.51 billion as compared to Rs 23.89 billion in the previous year as it continued to depict robust momentum as per expectations due to 19.08% YoY growth in volumes and higher percentage of prices of the cars in the product mix, plus the increase in prices in Q1 2018.
Suzuki has continuously raised prices for its cars. Pak Suzuki back in January announced that the prices were being increased due to the devaluation of the Pakistani Rupee. Prices were increased in April again.
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The increase in earnings for 1QCY18 (Quarter on Quarter up 24%) is primarily attributable to increase in sales volume. On a sequential basis, earnings improved by 24% QoQ, which was on account of (1) 4% QoQ growth in volumes, and (2) 50bps QoQ jump in gross margins.
However, margins disappointed, where gross margins clocked in at 8.3% which is likely due to higher Cultus percentage in overall product mix, which suggests that the variant carries lower margins due to lower localization levels compared to variants such as Mehran, Bolan and Ravi.
Margins also likely suffered due to sharp appreciation in the Japanese Yen during the quarter in relation to the US$ (up 5% YoY) as well as Pak Rupee depreciation against the US$ (up 6% YoY).
Pak Suzuki’s share at the bourse closed at Rs485.07 on Wednesday, down by -0.39% with a turnover of 0.17 million shares.
ALHAMDOLILAH! PEOPLE OF PAKISTAN GETTING SENSE. I THINK!
They should worried further more, as Bravo is coming soon.
Almost 20% more units sold in Q1 of new year…. Wah my Purestani my People… Goonh khareedo jao.. goonh ko value dete jao.. akhir main goonh hi nikle ga chahe jitna mehnga karlo..
What’s the point of import restrictions if they cannot make reasonable profits even after selling the junk Suzuki Mehran for more than 700,000 rupees?
Such a good news. Hope this crappy company is sent packing from here soon.