Pak Suzuki incurs Rs980mln in quarterly losses

KARACHI: Pak Suzuki Motor Company Limited (PSMC) on Tuesday reported Rs980.7 million in losses for the quarter ended March 31, 2019 as soft rupee-driven business cost significantly reduced the company’s gross profit margins.

Pak Suzuki earned Rs904.1 million during the corresponding period a year earlier, a filing with the Pakistan Stock Exchange said.

The automaker recorded loss per share of Rs11.92 in the January-March period compared to earnings per share (EPS) of Rs10.99 in the comparable period a year ago.

The company didn’t announce any cash dividend.

Brokerage Topline Research said the decline in profitability was mainly due to depletion in gross profit margins by five percentage points year-on-year to three percent – 25-quarter low – amid rupee devaluation, which considerably increased the company’s cost of doing business.

Pak Suzuki’s net sales grew nine percent year-on-year to Rs34.4 billion in 1QCY19. The company’s revenue grew on account of increase in car prices by an average 10 to 15 percent despite volumetric decline of four percent year-on-year to 36,412 units in the January-March quarter.

“We flag further unfavourable movement in exchange rate and commodity prices, regulatory changes, increased competition from existing and new players and disruptions in operations of principal company as key risks for the company,” Topline Research added.

In January-March, finance cost of the company jumped 346 percent year-on-year to Rs327 million owing to rise in borrowings to meet working capital requirement.

Fatima Fertilizer’s Q1 profit increases 26pc

Fatima Fertilizer Limited recorded a 26 percent year-on-year increase in its profit to Rs3.6 billion for the quarter ended March 31, 2019, translating into EPS of Rs1.73.

Fatima Fertilizer earned Rs2.8 billion in profit with EPS of Rs1.37 in the corresponding period a year earlier.

The company didn’t announce any cash dividend for the period.

Fatima’s revenue rose 17.2 percent year-on-year to Rs13.3 billion in 1QCY2019.

Taurus Securities said the revenue growth, coupled with improved off-takes of urea, resulted in gross margins of 59.10 percent during the period.

“Finance cost surged 74 percent mainly due to hike in interest rates and working capital requirement,” the brokerage added.

Shell’s profit falls to Rs256mln in Jan-Mar

Shell Pakistan’s profit fell to Rs256.8 million for the quarter ended March 31, 2019 from Rs1.3 billion in the corresponding period a year earlier.

Shell reported EPS of Rs2.4 in the January-March quarter compared to Rs12.67 in the comparable period a year earlier.

The company didn’t announce any cash dividend for the period.

Sales revenue, however, increased to Rs53.2 billion in the March quarter from Rs49.2 billion in the corresponding period a year earlier.

Net revenue rose to Rs45.5 billion from Rs41.6 billion.

Shell’s operating profit tumbled to Rs629.5 million in the January-March quarter from Rs1.6 billion in the comparable period. Finance cost escalated to Rs330.5 million from Rs46.7 million.