Profits for the Pak Suzuki Motor Company declined by 41% through Rs 1.43 billion at the half year end that ended on 30th June as a volume sales decrease was seen during the Punjab Government’s taxi scheme’s ending.
The first half experienced a 3% decline when it comes to rupee figures YoY while it was 9.3% in terms of volumes as the taxi cab scheme was completed in Jan to Feb 2016. Hence Bolan and Ravi sales decreased back by 37% and 34% according to JS Global analyst, Ahmed Lakhani. He also said that the decrease in volumes was more than the loss in revenue because there was a change shift for high priced cars now.
Under the six month period which was under review, Topline Securities analyst excluded the Bolan and Ravi sale for the cab scheme and said that they had still increased by 17% YoY to 34,864 pieces. The analysts found the financial results below expectations while the share price of Japanese car maker fell most by 5% just in a day from Rs 21.78 and closed at Rs 413.99 through the 617,900 shares at the PSE.
The yearly margins also fell more than 2.5% during this first half as the Japanese Yen was strong against the US dollar along with steel price increase alongside too. Super tax in April-June period was also seen through 42% effective tax rate for the same while it also notified the Pakistan Stock Exchange that it had earned Rs 2.42 billion in 2015 and according to earnings per share, there was a drop from Rs 29.41 to Rs 17.44.
The sales costs stood flat through Rs 35 billion while the financial costs went up to Rs 84.42 million from previous Rs 23.85 million besides operating costs that also increased from Rs 427.36 million to Rs 589.93 million. Hence solely in the period from April to June, a profit drop of Rs 487.84 million from previous year’s Rs 1.47 billion was seen by 67% decrease.