Thursday, July 7, 2022

PSMC earnings nosedived by 66% YoY


Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at

Pak Suzuki Motor Company Limited (PSMC) announced its CY18 financial results today where the company declared earnings of PKR 1,298mn (EPS: PKR 15.77), down by 66% YoY. On a quarterly basis, the company posted a loss after tax of PKR 94mn (LPS: PKR 1.15) during 4QCY18 compared to PKR 729mn (EPS: PKR 8.86) in 4QCY17 and PKR 95mn (EPS: PKR 1.15) in 3QCY18, respectively.

Along with the result, the company announced a cash dividend of PKR 3.16/share compared to PKR 18.60/share in SPLY.

Net sales of the company grew by 18% YoY to PKR 120bn in CY18 due to volumetric growth of 5% YoY to 138,003 units vs 130,813 units in SPLY along with multiple increase in car prices by an average of 10-15% YoY.

During 4QCY18, net sales of the company increased by 6% YoY and 16% QoQ owing to decline in overall sales volumes by 8% YoY being offset by higher prices while volumetric jump on a QoQ basis by 14% to 33,679 units aided topline.

Margins deteriorated to 5.88%, down by 360bps YoY as compared to 9.48% in CY18. The decline came on account of currency depreciation of 21% YoY eroding margins as company was unable to pass on the impact of currency and higher duties on imported raw material.

Other income decreased by 35% YoY to PKR 566mn due to reduction in bank balances and advances from customers.

Finance cost of the company jumped up by 432% YoY to PKR 363mn owed to rise in borrowings to meet working capital requirement.

Effective taxation was recorded at 37.7% in CY18 compared to 31.9% in SPLY.


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