Pak Suzuki’s profit plunges by 66%

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Pakistan’s local car assembler, Pak Suzuki, has posted its profit and it doesn’t look good; the company’s profit is down by 66%.

Pak Suzuki’s profit plunges to PKR 1.3 billion from PKR 3.8 billion

In a notice sent to Pakistan Stock Exchange (PSX), the car making company has revealed that its profit in the calendar year 2018 is down to PKR 1.3 billion and if compared with the previous year the company made PKR 3.8 billion. Interestingly, the company’s sales revenue was up in the said period, however, due to a weaker rupee, its profit margin nosedived.

Moreover, the Earnings per Share (EPS) of Pak Suzuki in 2018 was PKR 15.77 as opposed to 2017 where it stood at PKR 46.49. The revenues of the company increased by 18% while the cost of sales also surged by 22%.  On the other hand, the gross profit of Pak Suzuki plummeted by 27% from PKR 9.7 billion in the previous year and PKR 7.04 billion in 2018.

Read Also: Atlas Honda profits down by a whopping 51%

Commenting on the decline in profits, an industry expert said that other reasons which caused the dip are higher prices of auto parts which surged due to rupee depreciation. Finance cost of the company hiked to PKR 362.5 million from PKR 68 million. The highest selling cars for Suzuki in 2018 were Mehran and Wagon R. The company sold 40828 units of Mehran and 31146 units of Wagon R.

Furthermore, aside from Pak Suzuki, IMC has also posted its profit and according to it, its profit for the quarter that ended on 31, December 2018 has dropped to PKR 3.4 billion as opposed to PKR 3.7 billion in the same period of the corresponding year.

The Earnings per Share (EPS) of Toyota IMC is also down. In the quarter (Oct-Dec 2018) the earnings per share were PKR 43.31, and in the same period of the previous year, it was around PKR 47.53.

That’s it from our side, drop your thoughts in the comments section below.

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