Pakistan Suzuki Motor Company (PSCL) announced its financial results for the first quarter of 2019, ending on 31st March, reporting a loss of Rs. 980 million. The car manufacturing firm booked a profit of Rs. 904 million in the same period last year.
This is the company’s largest loss in 10-years.
As an economic slowdown looms, Pakistan’s largest domestic auto company started the calendar year in the red. The company’s revenues jumped 9.3% to Rs. 34.44 billion in the quarter under view from Rs. 31.50 billion in the previous year, on the back of an increase in the average price of products, despite a drop in volumes by 4% YoY.
However, the cost of sales increased by 15.33% to Rs. 33.32 billion as compared with Rs. 28.89 billion in the same period of the last year which brought down the gross profit to Rs. 1.11 billion, down by a massive 57.50% as compared with Rs. 2.61 billion.
The decline in profitability was due to an increase in the cost of doing business amidst rupee devaluation; however, the impact was gradually passed on to the consumers, according to Topline Securities.
| 1st Quarter 2019 Volumes | |||
| Models | 1QCY19 | 1QCY18 | Difference |
| Swift | 1101 | 1452 | -24.17% |
| Cultus | 6281 | 6123 | 2.58% |
| Wagon R | 8501 | 6630 | 28.22% |
| Mehran | 9576 | 12583 | -24% |
| Bolan | 5398 | 5779 | -6.60% |
| Ravi | 5555 | 5503 | 0.94% |
| Total | 36412 | 38070 | -4.36% |
A notable decline was witnessed in Mehran’s sales, which were down by 24% YoY. It is now being replaced by newly 660cc Alto. Moreover, motorcycle sales increased to 6009 units as compared to 5529 units in the same period last year.
There was a 5.5x surge in finance cost due to increase in debt borrowings and an increase in interest rates. Lower customer deposits forced the company to rely on borrowings to finance its working capital requirements, which resulted in a massive increase of 345.6% to Rs. 326 million in finance cost against Rs. 73.34 million in the same period the previous year.
Administrative cost increased to Rs. 626 million, while other income of the company decreased to Rs. 49.81 million from Rs. 176 million.
The unfavorable movement in the exchange rate and rising commodity prices with regulatory changes and increased competition from existing and new players can further dampen the company’s future outlook.
The company reported a loss per share of Rs. 11.92 from earnings per share of Rs. 10.99 as compared with the previous year. PSMC’s script at the bourse closed at Rs. 248.3, down by Rs. 12.57 or -4.82% with a turnover of 751,100 shares on Tuesday.
lol……….this made me smile
Very Nice, Allah Loss mai Barkat dalyee
30 yrs old models sold at exorbitant price and now they cry over loss
Funny
Its time Suzuki should realize the monoply is over and focus on quality.
What about the profit which they thug …from public form last 30 year’s
Bakwas kartee haien drama baaz.
ALLAH or barkat dalay in kay loss may
Mehran teen dabba ha or ya 8 lakh may sale karay rahain hain or now weeping??
hahahahahahahaha Pakistan ki awam ko loot lya Suzuki walo tm nay or tm kehty ho tumhara nuksan ho gyea Ghatiya logo itni mehngi cars wo b thakard quality ki awam ko loot rahay ho tm log Pakistan ki awam ko India main Car ka ratdm intahi sasta or Cars b khobsurat or Behtreen Or Pakistan Main Ghatia tareen Quality or Car b mehngi Suzuki Vetara wahan Launch ki khobsurat or behtreen or yahan py bekar cultus Or altoo 660cc Pakistan ki awam ko loot rahay ho tm suzuki walay
Why Japan got dual standards?Why didn’t they check the quality made in other countries. I will never buy suzuki whole of my life.its so disgusting and cheap quality.they must be shut down permanently .
This is same happening to Honda and Toyota in Pakistan. I ll never buy any of these local manufactured car. Don’t know why these companies not maintaining their standard.
It is interesting to see that every single comment here complains about Suzuki’s quality and monopoly. Hey Suzuki! It is about time you remove your head buried in sand and acknowledge that you have got competition now.
Suzuki deserve that it is absolutely right with them.They are part of the big 3 monopoly….Suzuki Alto for Rs.10 Lakhs.Give me a break.The prices of cars are insane in Pakistan.
Is Ko Kehte hai SUZUKI Khud Corruption Kar K Apni Profit Chupa Rahi hai :
NAB K Hawale Kiya Jaye SUZUKi Ko WARNA Jila Watan Kar DIYA Jaye
is ka credit imran niyazi khan ko jata hy
So happy, selling crap last 10 years. Swift has been redesigned Three times in last 10 years with vvt engines but we continue to get baleno engines in 10 year old shape..
May this company runs out of business Ameen
RIP ugly car for 10 lacs without AC
Its the price of their cars that is effecting the busines of suzuki no one one can afford to buy a local make at such prices ..
Wow! Iam so happy to know, i hope suzuki is forced into perfect competition
jab aap motor rikshaw jaisi gari 6 se 7 lakh ki becho ge tu end aisa hi ho ga
Due to the reason of mehran only
Nothing more
Thats good, they are selling crap to the people of Pakistan with th help of bureaucrats by imposing ban and very high taxes on import of vehicles.