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Suzuki’s profits fall 61 percent

By our correspondents
July 29, 2016

KARACHI: Pak Suzuki Motor Co Ltd (PSMC) on Thursday announced a decline of 61 percent in its second quarter net profit with a decline in sales and an increase in the cost of production.

In its financial results statement sent to the Pakistan Stock Exchange (PSX), the company reported a net profit of Rs487.84 million for the quarter ended June 30, 2016, down from Rs1.47 billion last year.  The company posted earnings per share (EPS) at Rs5.93 as compared to Rs17.91 in the same period of the last year.  The result is below market expectations.

Total sales of the company during the period were reported at Rs18.99 billion, down from Rs20.35 billion last year.

Cost of sales was posted at Rs17.21 billion from Rs17.43 billion in the same quarter of the last year.

Gross profit of PSMC remained at Rs1.77 billion, up from the last year’s Rs2.91 billion.

Net profit for the six-month ended June 30 remained at Rs1.43 billion, down 41 percent against Rs2.42 billion in the same period of the last year.

Analyst Misha Zahid at Arif Habib Corporation said PSMC’s revenue during the period deteriorated five percent on quarter-on-quarter basis to Rs18.99 billion on the back of volumetric dip in car sales to 31,459 units against 34,667 units in the first quarter of 2016.

Greater significance was the drawdown in the sales of Ravi and Bolan (down 30 percent and 18 percent, respectively) given conclusion of the Punjab Taxi Scheme in the last quarter.

Hasan Azhar at Taurus Securities said during the first half of 2016, the PSMC revenue declined by three percent to Rs39 billion due to nine percent lower car sales.

“Gross margins also dipped by 2.5 percentage points to 10.2 percent, mainly due to seven percent year-on-year appreciation of JPY against USD,” he said.

 

Colgate profits up 33 percent

Colgate Palmolive (Pakistan) Limited has announced increase in its profits by 33 percent for the year ended June 30, 2016.

In its announcement to the Pakistan Stock Exchange on Thursday, Colgate announced profits for the period under review at Rs2.82 billion as compared to Rs2.12 billion in the same period of the last year.

The company also announced a final cash dividend of Rs30 per share for the year.

During this period, the company announced earnings per share (EPS) of Rs58.78 as compared to Rs46.34 in the last year.

Net sales of Colgate grew 6.2 percent to Rs33.13 billion during this period against Rs31.17 billion last year, while net turnover after sales tax and
other discounts remained at Rs25.81 billion as compared to Rs24.31 billion
 last year.

The Colgate Palmolive (Pakistan) Limited’s cost of sales stood at Rs16.50 billion as compared to Rs16.63 billion, while gross profits were recorded at Rs9.31 billion from Rs7.67 billion last year.

However, other income increased to Rs416.92 million against Rs361.71 million that increased the profit margins.