Pak Suzuki Motors Company (PSMC) is scheduled to announce its financial result on 23rd Apr’19 whereby analysts expect the company to post loss after tax (LAT) of PKR 116mn (LPS: PKR 1.41), compared to earnings of PKR 904mn (EPS: PKR 10.99) in 1QCY18.
Despite total volumetric decline of 4% YoY, net sales of the company are expected to grow by 6% YoY to PKR 33.5bn.
This is owing to increase in car prices by an average of 10-15% on account of PKR depreciation (25% YoY), resulting in rise in cost of imported raw materials and parts.
Gross margins are expected to fall by 266bps to 5.64% (due to rise in cost of raw materials) compared to gross margins of 8.30% in SPLY.
However, gross margins on quarterly basis are expected to increase by 243 bps due to rise in company prices, effective from 1st Jan’19.
Finance costs of the company are expected to increase significantly by 340% YoY and 36% QoQ to PKR 323mn on account of rise in borrowings to meet working requirements.
On the other hand, analysts expect the company to record a turnover tax of 1.25%.