Pak Suzuki’s profits fall 76pc

Pak Suzuki Motor Co Ltd (PSMC) on Tuesday announced a decline of 76 percent in its third quarter net profits, amid fall in sales.

In its financial results statement sent to the Pakistan Stock Exchange (PSX), PSMC reported a net profit of Rs438.13 million for the quarter ended September 30, down from Rs1.81 billion last year.

The company posted earnings per share (EPS) of Rs5.32 as compared to Rs22.11 in the corresponding period of the last year.

Total sales of the company during the period were reported at Rs17.77 billion, down 16 percent from Rs21.18 billion last year.

Cost of sales was posted at Rs16.51 billion from Rs17.82 billion in the same quarter of the last year, which also trimmed the profits.

Gross profits of PSMC remained at Rs1.25 billion, down from the last year’s Rs3.36 billion. Other income of the company remained at Rs253.01 million, down against Rs313.06 million recorded during the same period of the last year.

For the nine-month ended September 30, the net profits of the company were registered at Rs1.87 billion, down 56 percent against Rs4.23 billion in the same period of the last year.

Ahmed Lakhani at JS Research said volumetric decline of 15 percent on year-on-year basis during 9M2016 in the absence of the Punjab government’s Cab Scheme led to a seven percent year-on-year dip in net revenues during the period, which shrank to Rs56.76 billion.

A sharp increase of 10.3 percent in Japanese yen against the US dollar was the leading factor for dismal earnings during the period under review, with gross margins falling by 462bps to settle at 9.2 percent, he added.