Pak Suzuki Motor Company Limited, the largest player in Pakistan’s automobile industry, has announced its financial results for the year ended 31 December 2021.
The company reported a profit of Rs. 2.6 billion on the back of an uptick in demand amid high consumer interest and a strong economic recovery post-COVID, among a somewhat stable policy rate for most of the CY21. The car manufacturing firm had booked a loss of Rs. 1.37 billion in 2020, according to a notice sent to the Pakistan Stock Exchange (PSX).
The company also announced a cash dividend of Rs. 6.5 per share after two years of losses.
During the year, Pak Suzuki’s revenues increased by a staggering 109 percent to Rs. 160.08 billion as compared to Rs. 76.72 billion in 2020 due to an increase in volumetric sales. The company managed to sell 122,803 units in CY21 compared to 59,323 units in the same period last year. The hike in prices also contributed to the high revenue figures.
The gross margins in CY21 clocked in at 5.1 percent compared to 4.3 percent in CY20.
Distribution and administration cost increased by 80.40 percent to Rs. 2.94 billion and 38.60 percent to Rs. 2.48 year-on-year, respectively.
Suzuki saw a 73 percent decrease in finance cost to Rs. 737 million as compared to Rs. 2.66 billion as the company timely retired its short-term debt.
Earnings per share of the company were increased to Rs. 32.56 from a loss per share of Rs. 16.75.
PSMC’s scrip at the bourse was closed at Rs. 210.20, up by Rs. 7.22 or 3.56 percent, with a turnover of 316,454 shares on Tuesday.
