Pak Suzuki Motor Company Limited (PSMC) has announced its highest-ever loss after tax of Rs. 6.33 billion for the calendar year (CY) that ended on December 31st, 2022.
The company reported a profit of Rs. 2.67 billion in the same period last year. Estimates suggest CY22 losses are mainly attributed to massive taxation amounting to Rs. 3.19 billion, 186 percent higher than Rs. 1.11 billion in taxes paid in CY21.
The net sales of the company increased by 26.5 percent to Rs. 202.46 billion as compared to Rs. 160.08 billion, due to various price hikes.
According to the automaker’s financial results for CY22, the company posted a loss of Rs. 77 per share as compared to earnings per share of Rs. 32.56 per share last year.
Gross margins clocked in at 5.8 percent during 2022, higher than the 5.1 percent recorded in 2021.
The Company said in a stock filing that it has outstanding foreign liabilities equivalent to $184 million at the year-end December 31, 2022, which increased to the equivalent of $218 million subsequent to the year-end.
“Upto 31 December 2022, the Company incurred an exchange loss of Rs. 3.55 billion on foreign currency transactions and balances. Subsequent to year-end PKR to USD parity has further deteriorated and resulted in a huge unrealized loss of Rs. 9 billion (approximately) which may impact the equity of the Company in the year 2023.
If the foreign currency liability is not paid due to the restrictions imposed by the State Bank of Pakistan, the exchange loss of the Company would further enhance which will adversely impact the equity of the company in the financial year 2023,” the filing stated.
The gross profits of the company increased by 43 percent to Rs. 11.68 billion from Rs. 8.17 billion in the same period last year.
Other income rose by 44.5 percent to Rs. 3.21 billion as compared to Rs. 2.22 billion.
Finance cost surged to Rs. 11.61 billion up by almost 16 times YoY as compared to Rs. 737.04 million reported in the same period last year increase in markup on delayed delivery and higher demurrage and detention charges.
Lastly, the company has booked a taxation of Rs. 3.19 billion in 2022 as compared to Rs. 1.11 billion in 2021.
PSMC’s scrip at the bourse closed at Rs. 118.40, down by Rs. 3.18 or 2.62 percent, with a turnover of 538,033 shares on Monday.
PSMC’s sales have hit rock bottom for the second time this year due to insufficient inventory and import restrictions.
As per the latest report from Pakistan Automotive Manufacturer’s Association (PAMA), Pak Suzuki sold fewer than 1,000 units in February. This is the automaker’s worst performance yet since countrywide COVID-19 lockdowns in April 2020, which saw production and sales reach zero.
Given the ongoing production struggles, the profits will continue to suffer.
These car companies earn alot of money from Pakistan by keeping unnatural high prices of their cars. These cars doesn’t even meet safety standard and these so called car companies charged very high price. These companies include Suzuki, Honda and Toyota, should go away from Pakistan.
Auto manufacturers companies should not forgot that how they looted customers on the stock material which they had in Pakistan.., raised prices and looted a lot.., so how now showing loose.., just to not return bank loan..,
Yeh chali jain to peechay kya khotay rerhain chalain hain? No other company is investing here like these three companies.
دس لاکھ کی گاڑی 40 لاکھ میں بیچنے کے باوجود بھی خسارہ ہورہا ہے تو اس کمپنی کو بند ہوجانا چاھیے کم از کم ایک حرام خور کمپنی تو کم ہوجایے گی۔
gud news atlast.worst car to drive is a suzuki company car.
🤣🤣 very gooood pakistan .love pakistan
I wonder how can it be true with an unexpected and unreasonable hike in prices of stock in hand and with out production on any increased input cost. Rather any decrease in revenue must itself be a reason of ruthless exorbitant prices which are totally unaffordable and are increased on company’s own discretion.