Industry

Pak Suzuki to post loss

Karachi, July 23, 2019: Pak Suzuki Motors is most likely to post loss in the second quarter of this calendar year (2QCY19).

According to Spectrum Securities report, the board of directors of Pak Suzuki Motor Company Limited (PSMC) have scheduled to meet on July 24, 2019, regarding 2QCY19 results announcement.

PSMC is estimated to post a loss after tax of Rs837 million (LPS Rs10.17) in 2QCY19, as compared to a net profit of Rs394 million in the same period of last year. 

Read More: Honda Atlas earnings decline 77 pc

The fall in profit is mainly due to subdued unit sales down by 19%YoY to 30.4k and rising cost on PKR depreciation (26%YoY). Whereas, in absence of any vehicle scheme & discontinuing production of Mehran rendered unit sales and depreciation in PKR against USD enhanced the cost of business. 

The economic slowdown is restricting company to pass on the full impact of mounting cost therefore margins deteriorating critically. Consequently, in 1HCY19 the company is expected to post decline in profit.

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