How Pak Suzuki Recorded Rs777.85million Profit?

0 2,432

One of Pakistan’s largest car manufacturing companies, Pak Suzuki Motor Company (PSMC), has reported a massive profit of Rs777.85million during the first quarter.  As per the company, it recorded a loss of Rs941.4million in the same period last year. The company shared the data in its financial results for the first quarter, ended on March 31, 2021. 

Revenue Increase: 

 In a notification to Pakistan Stock Exchange (PSX), the company credited sales increase and better gross margins for this profit. Meanwhile, revenue of PSMC has seen a jump of 103% to Rs36.09billion against Rs17.74billion in the same period last year. The company revenues have also seen a jump of 36% quarter on quarter, mainly due to higher volumetric sales. The Year on Year revenue increased by 106%, compelling to an increase in its car prices. Moreover, the low base effect of COVID-19 in March 2020 is also behind this massive increase.

The improved macroeconomics has also played a role in increasing Suzuki’s profits.

Gross Margins of Pak Suzuki: 

The gross margins have also relatively improved due to high fixed cost service because of higher volumes. As per the company, its margins improved by 209ppt year on year basis. With a jump in bookings, Suzuki’s other income increased 855.90% (Rs619.29 million), compared to Rs64.9million last year.

Finance Cost: 

The company’s finance cost decreased 76.42% to Rs260 million, against Rs1.06million in the same period the previous year. Meanwhile, the earnings per share were reported at Rs9.45 as compared to a loss per share of Rs11.4.

As per the latest PAMA report, Pak Suzuki sold 10,161 vehicles in March 2021, meaning a 14.1% Month on Month increase and an enormous 280.1%  Year on Year jump.

The numbers show that the company has recorded this huge profit after a tough 2020. Pak Suzuki has been dominating the hatchback segment in Pakistan for years, and it seems that it would continue to do so in the foreseeable future.

Google App Store App Store

Leave A Reply

Your email address will not be published.