Pak Suzuki Motor Company Limited, which is the largest player in Pakistan’s automobile industry, has announced its financial results for the first quarter ended March 31st, 2021.
The company reported a profit of Rs. 777.85 million during the first quarter. The car manufacturing firm had booked a loss of Rs. 941.14 million in the same period last year, according to a notice sent to the Pakistan Stock Exchange (PSX). This turnaround was due to the increase in sales and better gross margins.
PSMC’s revenues were increased by 103% to Rs. 36.09 billion as compared to Rs. 17.74 billion recorded in the same period last year. The revenues were also increased by 36% quarter on quarter. This was due to higher volumetric sales (up by 106% Year on Year) in 1QCY21 compelling to increase in price compared to the same period last year. To highlight, this abnormal increase is also due to the low base effect because of the COVID situation in March 2020.
Furthermore improved macroeconomics has also contributed to the company’s profits.
The gross margins have relatively improved because of high fixed cost coverage due to higher volumes. Gross margins improved by 2.9ppt year on year in 1QCY21.
With the number of bookings increasing, the other income of the company saw an increase of 855.90% or 8.5x to Rs. 619.29 million as compared to Rs. 64.79 million which was due to higher incomes on advances from customers.
Finance cost was decreased by 76.42% to Rs. 250 million as compared to Rs. 1.06 billion recorded in the same period last year.
Earnings per share were reported at Rs. 9.45 as compared loss per share of Rs. 11.44.
In March alone, Pak Suzuki Motor Company (PSMC) has once again left the entire competition in the dust, having sold 10,161 vehicles in March of 2021, recording a Month-on-Month (MoM) sales increase of 14.1 percent and a YoY sales increase of an enormous 280.1 percent.
PSMC’s scrip at the bourse was closed at Rs. 313.17, down by Rs. 25.39 or 7.50% with a turnover of 779,800 shares on Thursday.
