Pak Suzuki Motor Company Limited (PSMC) has announced a loss after tax of Rs. 2.48 billion for the third quarter that ended on September 30, calendar year (CY) 2022.
The company had reported a profit of Rs. 993 million in the same period last year. This took the nine-month results to a loss of Rs. 2.50 billion in 2022.
The result is above industry estimates primarily on the back of a massive increase in finance costs.
The net sales of the company shrunk by 41 percent to Rs. 29.80 billion as compared to Rs. 50.26 billion mainly due to lower volumetric sales and a slowdown in demand on account of the high cost of financing and higher car prices according to Arif Habib Ltd.
According to the automaker’s financial results for 3QCY22, the company posted a loss of Rs. 30.25 per share as compared to earnings per share of Rs. 12.07 per share last year.
Gross margins clocked in at 5.2 percent during the 3QCY22, stagnant over last year as higher car prices and a significant reduction in steel prices offset the impact of volumetric decline and PKR depreciation.
The gross profits of the company decreased by 41 percent to Rs. 1.56 billion from Rs. 2.66 billion in the same period last year.
Other income remained rose to Rs. 1.065 billion as compared to Rs. 423 million due to higher interest income on cash and cash equivalents.
Finance cost surged to Rs. 4.79 billion up by massively 62 times YoY as compared to Rs. 76 million reported in the same period last year which projections suggest could be a result of higher than estimated exchange losses and markup on late deliveries, according to a report by Ismail Iqbal Securities.
Lastly, the company has booked a tax reversal of Rs. 976 million compared to an advancement of Rs. 405 million in the same quarter last year.
PSMC’s scrip at the bourse was closed at Rs. 160.87, down by Rs. 6.75 or 4.03 percent, with a turnover of 137,170 shares on Wednesday.
Suzuki Production Halt
PSMC has announced a production suspension for three days in October 2022. It made the announcement at Pakistan Stock Exchange (PSX) on Tuesday, notifying three more non-production days (NPDs).
PSMC blames the State Bank of Pakistan’s new mechanism that requires CKD import approval beforehand. It states that the mechanism has slowed down CKD kit imports, causing the inventory to run out.
Last month, PSMC observed 12 NPDs while Toyota Indus Motor Company (IMC) saw 14 NPDs. Likewise, Hyundai Nishat and Honda Atlas also paused production due to the inventory shortfall.
The production cuts and sluggish sales have become a problem for carmakers as they fear further drop in revenues.
I fully support state bank not letting them import CKD. This way they will be forced to further localise the production of more parts. These companies are just wasting precious reserves by just keep importing parts
Agreed. Companies to invest in innovation and completely locally built cars, world has moved way ahead and we are going backwards. A Chinese delegate rightly mentioned it. Government must fully support in investment in complete with technology production in Pakistan.
ناجائزحرام منافع اور دھوکا یہ دو چیزیں انسان کو آسمان سے زمین پر لے آتی ہیں
They deserve more then this. Cartel mafia.
Bohat Khushi hui. Allah karay aur loss ho. Looters
Suzuki,Toyota & Honda should face more loose because there services and unit qualities are too poor as compare to there unit charges.As you can compare Alto vxr’s price(1.975M),is that a reasonable price for this quality?
Govt will not play his role but we people have to do this.
Khan ko uterny do asli khel phir shuru hoga ye tu demo hy
Sahi ho raha hai, hamara paisa 7 mahina se rakha hoa hai Gari bi nahi dy raha Suzuki motor Allah ka azab aye ga, aur own 4 lac mang rahe thy showroom walay acha hoa aur azaab aye
شکر کرو پاکستانی قوم کا یہ ٹین ڈبہ سوزوکی کے لے رہے ہیں اگر کسی اور ملک میں ہوتے تو یہ پہلے دن بین لگتا ہے اور میونسپلٹی والے لیتے 😇🥹😇🥹😇