The prevailing economic meltdown shattered the whole auto industry but Pak Suzuki has a different tale of woes and miseries. Zero inventory, prolonged production cuts and dwindling sales and price hikes led to record loss of Rs 6.33 billion last year.
The company reported the biggest ever loss after tax of Rs. 6.33 billion for year 2022. As per the details Pak Suzuki earned profit of Rs. 2.67 billion last year. Massive taxation of Rs. 3.19 billion, marked as the main reason for the downtrend which is 186% more than 1.11 billion in taxes paid in calendar year 21.
Moreover, net sales observed a hike of 26.5% in the face back-to-back price jumps. Meaning, Pak Suzuki earned Rs. 202.46 billion in 2022 against Rs. 160.08 previous year. Financial results for CY22 reported a loss of Rs. 77 per share compared to 32.56 per share last year.
The company’s stock filing stated, “up to 31 December 2022, the Company incurred an exchange loss of Rs. 3.55 billion on foreign currency transactions and balances. Subsequent to year-end PKR to USD parity has further deteriorated and resulted in a huge unrealized loss of Rs. 9 billion (approximately) which may impact the equity of the Company in the year 2023.
If the foreign currency liability is not paid due to the restrictions imposed by the State Bank of Pakistan, the exchange loss of the Company would further enhance which will adversely impact the equity of the company in the financial year 2023”.
Suzuki Shuts Down Bike Assembly Plant
Pak Suzuki Motor Company (PSMC) has been facing some major operational issues lately, thanks to import restrictions, which have forced the company to shut down its bike assembly plant this month. According to an official notice submitted to the Pakistan Stock Exchange (PSX), the company’s inventory shortage has forced them to take this drastic step. The shutdown will begin on March 20 and last until March 31.
What do you think about the recent loss PSMC has reported? Tell us in the comments section.
