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Pak Suzuki Posts Rs. 3.8 Billion Profit for Q3 2023
Pak Suzuki Motor Company Limited has reported a significant turnaround with a profit after tax of Rs. 3.8 billion for the quarter ending on September 30, 2023.
This marks a notable recovery from the substantial loss of Rs. 2.48 billion incurred during the same period last year.
Despite a 34 percent decline in volumetric sales, the company managed to maintain flat year-on-year revenues for the quarter, largely attributed to the increase in car prices.
However, on a quarter-on-quarter basis, revenue witnessed an impressive 40 percent growth, supported by a notable 47 percent increase in car volumes.
The result has surpassed market expectations, primarily driven by higher gross margins.
The gross margin for the third quarter of 2023 stood at 14.1 percent, while the margin for the 9-month period was recorded at 11.4 percent.
Despite the positive financial turnaround, the company faced a decline in other income by 39 percent year-on-year, amounting to Rs. 1.6 billion during the 9-month period.
However, during the third quarter of 2023, the company earned a finance income of Rs. 144.5 million, primarily due to exchange rate gains, marking a significant improvement compared to the preceding quarters.
Distribution and marketing expenses saw a 19 percent year-on-year increase during the third quarter, amounting to Rs. 600 million.
This rise was in line with the overall increase in volumetric sales and the impact of higher inflation.
The market has responded positively to Pak Suzuki’s financial performance, with its scrip at the bourse reaching Rs. 205.94, a 7.5 percent increase or Rs. 14.37.
The turnover of 674,597 shares on Thursday highlights investor confidence in the company’s prospects. Furthermore, the Board of Directors has approved the delisting from the PSX under Rule 5.14 of Voluntary Delisting.
The company reported earnings per share of Rs. 46.24 for the third quarter of 2023, while a loss per share of Rs. 71.34 was recorded for the 9-month period.
Additionally, the company paid Rs. 309 million in taxes during the third quarter, with the overall taxes paid for the 9-month period totaling Rs. 1.85 billion.
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