Pak Suzuki Motor Company Limited (PSMC) has announced a loss after tax of Rs. 460.22 million for the quarter that ended on March 31, calendar year (CY) 2022.
During the corresponding period last year, the car manufacturer had booked a profit of Rs. 778 million.
According to the automaker’s financial results, the losses occurred on the back of an increase in financial charges, a sharp decline in other income, and a higher cost of production.
However, the net sales of the company increased by 32 percent YoY to Rs. 47.736 billion during 1QCY22 from Rs. 36.098 billion in the same period last year amid upward revisions in car prices together with higher volumetric sales.
The loss came as a surprise, where the major deviation came from higher than anticipated finance cost and lower than anticipated other income despite flattish gross margins sequentially
Gross margins of the company went down by 3.29 percent YoY to 2.83 percent during the period in review. The decline was witnessed as a result of higher cost pressure (mainly freight cost and steel prices) and currency depreciation.
Gross profits decreased by 39 percent to Rs. 1.349 billion from Rs. 2.209 billion in the same period last year. Likewise, the other income of the company dipped by 15 percent to Rs. 527 million as compared to Rs. 619 million due to lower income from cash and cash balances.
During the quarter, the company’s financing cost increased by 312 percent YoY to Rs. 1.031 billion million is mainly due to factors such as increased payments on late deliveries, growth in advances from customers, and exchange rate losses.
The company reported a loss per share of Rs. 5.59 as compared to earning per share of Rs. 9.45 in the same period last year.
PSMC’s scrip at the bourse was closed at Rs. 200.49, down by Rs. 12.21 or 5.74 percent, with a turnover of 152,043 shares on Tuesday.
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