Web Desk — Blaming the rising import cost of parts amid the massive depreciation of the Pakistani rupee, Pak Suzuki Motor Company (PSMC) has posted a net loss of Rs460.2 million for the first quarter ended March 31, 2022.

According to a statement sent to Pakistan Stock Exchange (PSX) on Tuesday, the company posted a net profit of Rs777.9 million in the same quarter of the previous year.

Pak Suzuki Motors’ financial results show that net sales increased by 32 percent YoY to Rs. 47.736 billion in 1QY22 from Rs. 36.098 billion in the same period last year amid upward revisions in car prices and higher volumetric sales.

Despite flat gross margins sequentially, the major deviation was from higher than anticipated finance costs and lower than anticipated other income.

During the period under review, the company’s gross margin declined by 3.29 percent YoY to 2.83 percent. The decline was caused by higher costs (mainly freight costs and steel prices) as well as currency depreciation.

From Rs. 2.209 billion in the same period last year, gross profits decreased by 39 percent to Rs. 1.349 billion. Additionally, the company’s other income decreased by 15 percent to Rs. 527 million as compared to Rs. 619 million as a result of lower income from cash and cash balances.

The company’s financing cost increased by 312 percent YoY to Rs. 1.031 billion million during the quarter due primarily to increased payments on late deliveries, growth in customer advances, and exchange rate losses.

The company reported a loss per share of Rs. 5.59, compared to a profit per share of Rs. 9.45 in the same period last year.

PSMC’s scrip closed at Rs. 200.49 on Tuesday, down by Rs. 12.21 or 5.74 percent, with 152,043 shares changing hands.

Indus Motor results

Indus Motor Company’s (IMC) net profit surged 41.6% to Rs5.1 billion in the third-quarter ended March 31, 2022, due to multiple upward revision in car prices and surge in other income.

Accordingly, the company recommended a third interim cash dividend of Rs26 per share to the shareholders, whose names would appear in the register on May 9, 2022.

The company’s earnings per share surged to Rs65.11 in the quarter under review compared to Rs45.98 in the same quarter of the previous year.

IMC’s share price, however, dropped 1.79% (or Rs24.51) to Rs1,347 with 16,092 shares turnover at PSX.

“The upsurge (in profit) is primarily driven by higher other income (up 122% year-on-year) and higher sales revenue (up 32% year-on-year),” Arif Habib Limited (AHL) analyst Mahe Rukh Fatima said in a post-result commentary.

The cumulative nine-month profit surged 82% to Rs15.3 billion (earnings per share of Rs194.56) compared to Rs8.4 billion (earnings per share of Rs107.07) in the same period of the previous year.

In the quarter under review, the net sales grew to Rs68.2 billion, up 32% year-on-year amid a “series of upward revisions in car prices together with higher volumetric sales (11.9% year-on-year.”)

All Suzuki Car Price List

Variant Price

Alto VX PKR 1,425,000/-

Alto VXR PKR 1,675,000/-

Alto VXL-AGS PKR 1,886,000/-

Variant Price

WagonR VXR PKR 2,019,000/-

WagonR VXL PKR 2,129,000/-

WagonR AGS PKR 2,319,000/-

Variant Price

Cultus VXR PKR 2,250,000/-

Cultus VXL PKR 2,474,000/-