Pakistan’s largest auto manufacturer Pak Suzuki Motor Company (PSMC) posted a net profit of Rs 438 million till the September quarter. However, this was recorded as Pak Suzuki profit falls by 76% in comparison to last year’s Rs 1.81 billion.
The Pak Suzuki profit falls were given by the Pakistan Stock Exchange (PSX) as earnings per share (EPS) came down. They came to Rs 5.32 from EPS of Rs 22.11 last year. The result was also below expectations speculated by Topline Securities. The PSMC share price came to Rs 536.22 (4.97% decrease). This was because the KSE -100 Index was 87 points or 0.21% down at 40,764 points.
Pak Suzuki sales
The sales has also fallen by 16% at Rs 17.1 billion for Q3 2016. It was seen due to the sales post culmination of the Punjab Government’s Apna Rozgar Taxi Scheme. Their sales volume was 25,201 units (34% down) for the quarter. It was also 17.5% down to 82,504 units during the last nine months of 2016. Excluding Bolan and Ravi, sales have increased 19% in the quarter while increasing 34% in nine months with 78,304 units.
Pak Suzuki profits
On the other hand the annual profit came down by 63% to Rs 1.3 billion for the quarter. The gross margins also contracted 9% points to 7%. This is due to the 1.5% appreciation of Yen Vs Rupee. It has an aggregate of 10% appreciation since the last two quarters. The yen appreciation came post Brexit though the fears have now eased. Moreover, the higher input cost is due to the higher steel prices. They have kept the gross margin profit under pressure as revenue came down 6% on quarterly basis. This was due to the 7.6% decline in volumes as well.
The gross margins have contracted by 2.3% points from 9.4% in the second 2016 quarter. In the nine months period, sales fell by 7% YoY to Rs 56.8 billion. The gross profit fell by 38% YoY to Rs 5.2 billion whereas they fell 5.3% points to come at 9.1%.