Karachi, March 22, 2021: Pak Suzuki Motor Company (PSMC) declared a net loss of Rs1.6 billion (LPS: Rs19.31), compared to a net loss of Rs2.9 billion (LPS: Rs35.49) in CY19. However, during 4QCY20, the company returned back to profitability with a PAT of Rs1.0 billion (EPS: Rs12.26), which was well above market expectations
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According to JS recovery in 4Q was mainly on the back of (1) massive surge in gross margins (508bps YoY), (2) 70percent YoY drop in administrative expenses, (3) 451percent YoY jump in Other Income, and (4) 73percent YoY reduction in Finance costs due to massive deleveraging of its balance sheet.
Volumetric growth in 2MCY21 (64percent YoY) plus a strong number expected in the current month (~10k), coupled with improving PKR/US$ parity suggest further growth for the company’s bottom line in 1QCY21/