Pak Suzuki Motors Company Limited (PSMC) on Wednesday declared massive loss of Rs2.5 billion for third quarter (July – September) 2022.
According to financial results submitted to Pakistan Stock Exchange (PSX), the company announced its third quarter of current year results where it posted loss after tax of Rs2.5 billion compared with profit of Rs443 million in the second quarter. The loss per share of the company came at Rs30.2 as compared with earnings per share Rs5.4 during the period under review.
The cumulative loss for nine months of current year (January – September 2022) to Rs2.5 billion with loss per share of Rs30.5/-.
Analysts at AKD Securities Limited said that earnings for the quarter are well below industry expectations due to finance costs going through the roof, clocking in at Rs4.8 billion for the quarter.
Revenue for the quarter has decreased by 54 per cent quarter on quarter (QoQ) to reach Rs29.8 billion, while also down by 41 per cent year on year (YoY).
The gross margin in third quarter of the current year clocked in at 5.2 per cent in contrast to the 4.4 per cent in the second quarter of the year. Despite significant currency depreciation, the company has hiked its prices in accordance, with the revised prices of June effective on some of the cars delivered, the analysts added.
They further said that finance costs have beaten expectations by a mile. With the Rs4.8 billion consisting of hefty compensation on late deliveries, likely north of Rs3 billion. The rest of the distance consists of exchange losses due to the revaluation of foreign trade creditors.
The company has sustained its strong other income in the quarter, clocking in at Rs1.1 billion owing to strong income from cash balance. The amount is significantly lower than the estimates, primary due to cash balance being diminished by the hefty payments on late deliveries.
