Pak Suzuki Motor Company Limited, which is the largest player in Pakistan’s automobile industry, has announced its financial results for the year that ended December 31st, 2020.
The company reported a loss of Rs. 1.58 billion on the back of a reduction in its revenues and lower cost of sales. The car manufacturing firm had booked a loss of Rs. 2.92 billion in 2019, according to a notice sent to the Pakistan Stock Exchange (PSX). This is a reduction of 46 percent in the loss as compared to the same period last year.
However, during the last quarter of 2020, the company posted a profit of Rs. 1 billion compared to a loss of Rs. 234 million in the same quarter last year. Pak Suzuki has reported a profitable quarter for the first time after reporting an 8th consecutive quarter loss. The increase in profitability in the last quarter was mainly driven by volumetric growth in sales as it sold 20,451 units and rupee appreciation, which was up by 3.82 percent QoQ.
During the year, the company reported a 34 percent decline in revenues, which stood at Rs. 76.72 billion as compared with Rs. 116.54 billion in 2019. The drop in revenues was due to a 46.11 percent year-on-year drop in vehicle sales owing to the COVID-19 pandemic and stiff competition from other market players.
The cost of sales also decreased by 36 percent to Rs. 73.41 billion as compared to Rs. 114.56 billion.
| Models | 2020 | 2019 | Difference |
| Swift | 1,690 | 3,677 | -54.04% |
| Cultus | 13,215 | 18,615 | -29.01% |
| Wagon R | 7,916 | 21,079 | -62.45% |
| Mehran | 06 | 16,852 | -99.96% |
| Bolan | 5,951 | 12,287 | -51.57% |
| Alto | 23,479 | 23,388 | 0.40% |
| Ravi | 6,796 | 13,690 | -50.36% |
| Total | 59,053 | 109,588 | -46.11% |
It is worth mentioning that Mehran was discontinued by Suzuki and was replaced by Alto in June 2019.
Distribution and administration costs dropped by 35 percent and 30 percent year-on-year, respectively.
Suzuki saw a 28 percent increase in finance cost to Rs. 2.66 billion as compared to Rs. 2.08 billion. With the number of bookings increasing, the company reported an increase of 217 percent in other income. It was reported at Rs. 704 million as compared to Rs. 222.50 million in 2019.
Loss per share during the year decreased to Rs. 19.31 from a loss per share of Rs. 35.49. PSMC’s scrip at the bourse was closed at Rs. 274.12, up by Rs. 10.32 or 3.91%, with a turnover of 961,600 shares on Monday.
2020 was a tumultuous year for the entire automotive industry of Pakistan due to the pandemic-induced slump in trade and other business activities. However, it seems to have catapulted the demand for vehicles to an unprecedented height, hence the lessening of losses for the automaker in the aforementioned period.
The recent case-in-point is the significant amount of increase in sales that PSMC recorded in January and February of 2021. Plus, with the new Suzuki Swift possibly on the way this year, there is a likelihood the sales and the revenue of PSMC would leap even higher.
NaPak Suzuki already imports huge amount of products from parent Suzuki outside to show loss in Pakistan
Good for suzuki, they not launched good cars for Pakistan. Now Pakistan not need suzuki, honda and toyota, beacuse we have a lot of options new better cars.
Suzuki is a good blackmailer towards Pakistani people.
I am user of suzuki but fairly sure pak suzuki management is very bad at this point
ان کا دوزخ نہیں بھر سکتا۔ قیمتیں آسمان پر اور پھر بھی نقصان
It should be done and going very weldone specialy with Suzuki company Even Honda city means to say three big they are introducing olest model specially in Pakistan.
Wel. done Allah almighty Suzuki should. be lose.
Suzuki should remove or kick out from Pakistan.They have looted Pakistani,s well.
Thats how they are going to up their quality and lower the price to sustain .
I think it should happen to all the BIG THREE companies.
Until and unless they will improve their products provide good quality like the other Asian markets they have! Or face the losses
Horrible horrific Cars
No updated versions at all
The sales figure is because Suzuki has booked so many vehicles in last quarter but still they are unable to deliver them. I booked my vehicle in November last year and still waiting for delivery. Pak Suzuki has lost its credibility and market share. Soon they will be vanished because of their is poor quality and poor customer service.
Bakwas Kar rahay Hain Suzuki walay booking ki cars Tu ye log time pay deliver Nahi Kar rahay Pak Suzuki Ka help line number b koi pick Nahi karta na hi ye emails Ka reply kartay Hain
Teen dabba manufactured company in Pakistan. peoples needs to understand how important is safety more than resale value.
i wish to wipeout their setup from Pakistan to save human.
کوڑیوں کی چیز ہیروں کے دام بیچ کر بھی نقصان🤔🤔🤔
Bye bye BIG 3 as soon there will be plenty more and better options for Pakistani’s. They all have looted enough specially Suzuki by delivering and producing garbage cars. Game over!!!