KARACHI: The Pak Suzuki Motor Company Limited (PSMC) recorded a loss of Rs460 million translating into the loss per share (LPS) of Rs5.59 during the first quarter of 2022.
The company recorded a profit of Rs778 million translating into the earnings per share (EPS) of Rs9.45 during the first quarter of 2021 and profit of Rs489 million (EPS: Rs5.94) during the fourth quarter of 2021.
Mah e Rukh Fatima at Arif Habib Limited said that the loss came mainly on the back of a surge in the financial charges, substantial decline in other income and higher cost of production.
The net sales of the company grew to Rs47.73 billion during the first quarter of 2022, up 32 per cent on a year-on-year basis amid series of upward revisions in car prices together with higher volumetric sales, which were up 31 per cent, while on a sequential basis, the sales declined 9 per cent on quarterly basis.
The PSMC gross margins sharply plunged to 2.83 per cent, down 329bps on a year-on-year basis and 72bps on a quarter-on-quarter basis

“The decline in the gross margin came amid relatively higher cost pressure mainly freight cost and steel prices together with rupee devaluation,” Fatima said.
During the period under review, other income declined substantially, down 15 per cent on a year-on-year basis and 43 per cent on a quarter-on-quarter basis amid reduction in cash and bank balance.
“The company’s finance cost increased 4.1x to Rs1 billion with potential possibilities of increased payment on late deliveries; given advances from customers have grown significantly and or exchange losses booked,” she added.
The company booked effective taxation at 29 per cent during the first quarter of 2021, similar to that during the same period of last year.