Karachi, October 28, 2019: Pak Suzuki Motor Company Limited (PSMC) announced its 3QCY19 financial result today where the company declared a loss after tax of PKR 1,161 million (LPS: PKR 14.11), compared to a profit after tax of PKR 95 million (EPS: PKR 1.15) in 3QCY18 and a loss of PKR 545 million (LPS: PKR 6.62) in 2QCY19. With this, the loss during 9MCY19 settled at PKR 2,687 million (LPS: PKR 32.64), compared to profit of PKR 1,392 million (EPS: PKR 16.92).
Net sales of the company decreased by 4 percent YoY to PKR 25.6 billion in 3QCY19 compared to PKR 26.6 billion in 3QCY18. Despite increase in car prices by an average of 15-20 percent, topline of the company plunged by 4 percent YoY and 17 percent QoQ due to volumetric decline of 21 percent YoY and 24 percent QoQ to 23,147 units.
Gross margins registered at -0.91 percent, down by 726bps YoY and 191bps QoQ as compared to 6.35 percent in 3QCY18 and 1.00 percent in 2QCY19, respectively.
The decline came on account of currency depreciation of 21 percent YoY which eroded margins as company was unable to pass on the impact of adverse currency movement, higher duties on imported raw material, and change in sales mix from high margin cars to low margin cars.
Other income dipped by 45 percent YoY to PKR 50 million due to reduction in bank balances and advances from customers.
Finance costs of the company jumped up by 1,089 percent YoY and 1 percent QoQ to PKR 384 million owing to rise in borrowings to meet working capital requirement.
Company recorded a tax credit of PKR ~730 million on investment to introduce the 660cc Alto.
