PSMC settles LAT of Rs1,525m

1569

Staff Reporter

Karachi

Pak Suzuki Motor Company Limited (PSMC) announced its 2QCY19 financial result today where the company declared a loss after tax of PKR 545mn (LPS: PKR 6.62), compared to a profit after tax of PKR 394mn (EPS: PKR 4.78) in 2QCY18 and a loss of PKR 981mn (LPS: PKR 11.92) in 1QCY19. With this, the loss during 1HCY19 settled at PKR 1,525mn (LPS: PKR 18.53), compared to profit of PKR 1,298mn (EPS: PKR 15.77). Net sales of the company grew by 1% YoY to PKR 31.0bn in 2QCY19 compared to PKR 30.9bn in 2QCY18. Despite volumetric decline of 17% YoY to 30,433 units vis-à-vis 36,776 units in 2QCY18, revenue of the company grew on account of increase in car prices by an average of 15-20%. Margins deteriorated to 1.00%, down by 466bps YoY and 225bps QoQ as compared to 5.66% in 2QCY18 and 3.25% in 1QCY19, respectively. The decline came on account of currency depreciation of 25% YoY which eroded margins as company was unable to pass on the impact of adverse currency movement and higher duties on imported raw material. Other income dipped by 75% YoY to PKR 53mn due to reduction in bank balances and advances from customers. Finance costs of the company jumped up by 1,845% YoY and 16% QoQ to PKR 380mn owed to rise in borrowings to meet working capital requirement. Company recorded a tax credit of PKR 1.4bn on investment to introduce the 660cc Alto.