PSMC posted loss of Rs. 1161m in 3QCY19

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Zubair Yaqoob

Karachi

Pak Suzuki Motor Company Limited (PSMC) announced its 3QCY19 financial result Friday, where the company declared a loss after tax of PKR 1,161mn (LPS: PKR 14.11), compared to a profit after tax of PKR 95mn (EPS: PKR 1.15) in 3QCY18 and a loss of PKR 545mn (LPS: PKR 6.62) in 2QCY19. With this, the loss during 9MCY19 settled at PKR 2,687mn (LPS: PKR 32.64), compared to profit of PKR 1,392mn (EPS: PKR 16.92). Net sales of the company decreased by 4% YoY to PKR 25.6bn in 3QCY19 compared to PKR 26.6bn in 3QCY18. Despite increase in car prices by an average of 15-20%, topline of the company plunged by 4% YoY and 17% QoQ due to volumetric decline of 21% YoY and 24% QoQ to 23,147 units. Gross margins registered at -0.91%, down by 726bps YoY and 191bps QoQ as compared to 6.35% in 3QCY18 and 1.00% in 2QCY19, respectively. The decline came on account of currency depreciation of 21% YoY which eroded margins as company was unable to pass on the impact of adverse currency movement, higher duties on imported raw material, and change in sales mix from high margin cars to low margin cars.

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