PSMC records Rs2.67 billion profit in 2021

KARACHI: The profit after tax of Pak Suzuki Motor Company Limited (PSMC) increased 94 per cent to Rs2.67 billion translating into the earnings per share (EPS) of Rs32.6 during the year ended December 31, 2021.

The company recorded a profit of Rs1.37 billion (EPS: Rs16.8) during the same period last year.

The company along with the results, also announced a cash dividend of Rs6.5/share.

During the fourth quarter, the revenues showed a growth of 64 per cent on a year-on-year basis to reach Rs43 billion, compared with Rs26.6 billion in the same period of 2020. The increase in revenue is mainly attributable to the volumetric growth coupled with price revision.

The gross margins of the company clocked in at 3.6 per cent during the fourth quarter of 2021 against 9.3 per cent reported during the corresponding period of last year, due to 11 per cent rupee devaluation coupled with higher CRC prices and freight cost.

PMSC’s other income witnessed an increase of 39 per cent on a year-on-year basis to clock in at Rs93 million, compared with Rs38 million, due to the increase in the policy rate and backlog orders.

During the fourth quarter of 2021, selling/distribution cost recorded a growth of 48 per cent to reach Rs931 million, compared with Rs631 million during the same period last year. The increase in the distribution cost is due to the increase in volumetric sales coupled with the rise in freight charges.

The company’s financial charges recorded an increase of 39 per cent on a year-on-year basis to Rs367 million, compared with Rs265 million during the same period last year.

The increase in the financial charges is mainly attributable to increase in the policy rate followed by the rise in long term debt and exchange loss.