KARACHI: Pak Suzuki Motor Co. Limited has declared a loss of Rs13 billion in the first quarter ending on March 31, 2023.
The company, which is a joint venture between Pakistan Automobile Corporation Limited and Suzuki Motor Corporation Japan, submitted its financial results for the period to the Pakistan Stock Market (PSX). The loss after tax of Rs13 billion is a sharp increase from the Rs460 million loss reported in the corresponding period last year.
The loss per share for the quarter ending March 31, 2023, was Rs156.94 compared to the loss per share of Rs5.59 in the same period last year. The board of directors of Pak Suzuki Motor Co. Limited approved the unaudited condensed interim financial information for the first quarter of 2023.
The company’s report stated that the government was striving to maintain forex reserves and stability in exchange rates through fiscal consolidation. While this may impact growth prospects in the short term, it may contribute to stability in the long run by expanding production capacities and productivity. The report also emphasized that long-term consistent policies are vital for the growth of the auto industry.
The challenging macroeconomic indicators in the country have adversely affected the auto industry. The automobile industry provides import substitution for local consumption, develops the engineering base in the country, and contributes significantly to the national exchequer through payments for duties and taxes. The industry expects relaxation on taxes and import restrictions with support from the government to play its role in the economic development of the country.
Pakistan is currently facing severe economic crises. The country is grappling with high inflation, low growth, and low levels of official foreign exchange reserves. Ongoing geopolitical tensions have led to an increase in commodity prices and global monetary policy tightening. The unprecedented depreciation of the Pak Rupee, increased freight charges, hike in interest rate, political instability, rise in inflation, uncertainty over external financing, and the government’s actions to control imports have further aggravated the economic outlook. Floods in the country have also added to the economic woes.
Pak Suzuki Motor Company Limited (PSMCL) is a public limited company with its shares quoted on Pakistan Stock Exchange. The Company started commercial production in January 1984 with the primary objective of progressive manufacturing, assembling, and marketing of Cars, Pickups, Vans, and 4×4 vehicles in Pakistan. The Company’s long-term plans include tapping into export markets.
In conclusion, the financial results of Pak Suzuki Motor Co. Limited for the first quarter of 2023 have shown a significant loss, which is attributed to the challenging macroeconomic indicators in the country.
The automobile industry has been providing import substitution for local consumption, developing the engineering base in the country, and contributing significantly to the national exchequer through payments for duties and taxes. The industry expects support from the government to play its role in the economic development of the country.