Pak Suzuki Motor Company Limited (PSX: PSMC) has announced a profit after tax of Rs. 3.8 billion for the quarter that ended on September 30, 2023, compared to a loss of Rs. 2.48 billion in the same period last year.
Meanwhile, PSMC posted a loss after tax of Rs. 5.87 billion for the 9 months that ended on September 30, compared to a loss of Rs. 2.5 billion in 9MCY22.
According to Topline Securities, the result came higher than expectations due to higher gross margins.
Revenues for the quarter remained flat year-on-year (YoY) despite a 34 percent fall in volumetric sales due to higher car prices. On a quarter-on-quarter basis, revenue was up 40 percent amid a 47 percent increase in car volumes.
In 3QCY23, the sales of the company arrived at Rs. 29.9 billion, up by a meager 0.38 percent YoY. Conversely, sales significantly declined by 48 percent YoY from Rs. 142 billion to Rs. 73 billion in 9MCY23
Resultantly, the gross margin clocked in at 14.1 percent for 3QCY23 and 11.4 percent for 9MCY23.
With the number of bookings declining, the other income fell by 39 percent YoY to Rs. 1.6 billion as compared to Rs. 2.6 billion in 9MCY22.
During July-September, the other income declined by 28.5 percent YoY to Rs. 761 million. Finance cost which has been the key reason for severely exacerbating the bottom line of the company in the last 9 months (Rs. 9.9 billion) was green during 3QCY23, the company earned a finance income of Rs. 144.5 million during the quarter under review primarily due to exchange rate gains, according to Topline Securities.
Distribution and marketing expenses went up by 19 percent year on year in the third quarter to Rs. 600 million which was in line with the increase in volumetric sales and higher inflation.
The company paid Rs. 309 million in taxes during 3QCY23, taking overall taxes paid during 9MCY23 to Rs. 1.85 billion. PSMC posted earnings per share of Rs. 46.24 for 3QCY23 while a loss per share of Rs. 71.34 for 9MCY23.
At the time of filing, the automaker’s scrip at the bourse was Rs. 205.94, up by 7.5 percent or Rs. 14.37 with a turnover of 674,597 shares on Thursday.
Along with the result, the Board of Directors of PSMC has approved to delist from PSX under rule 5.14 of Voluntary Delisting.
