Pak-Suzuki posts profit at Rs794m
KARACHI, March 19: Pak-Suzuki Motor Co Ltd (PSMC) announced its results for the year ended Dec 31, 2011, on Monday, posting profit-after-tax (PAT) at Rs794 million, translating into earning per share (eps) at Rs9.65.
The results showed 3.76 times higher earnings over PAT at Rs211 million and eps at Rs2.57 in the earlier year.
The board also recommended cash dividend at Rs2 per share.
Analyst Nauman Khan at brokerage Topline Securities said that the improved earnings could be attributed to 24 per cent increase in company’s sales on the back of, firstly increase in per unit price and second, 17 per cent increase in volumetric sales.
Furthermore, company’s gross margin improved by 119bps to stand at 3.5 per cent as compared to 2.4 per cent in the same period last year as increase in the unit prices more than offset the impact of rising Japanese Yen.
Moreover, on account of higher volumetric sales ‘other income’ also increased by 8 per cent to Rs620 million, from Rs575 million last year.
Analyst Mohammad Sarfraz Abbasi, analyst at brokerage Summit Capital, digged deeper into the accounting figures.
He concluded that higher prices and volumetric sales were the reason for the substantially higher profit in 2011.
During the year, average prices of the cars stood at about 6.4 per cent higher than the previous year whereas total sales of cars were up by a substantial 17 per cent to 92,339 units as against the total sales of 78,638 units in 2010.
Sale of Suzuki Motorcycles was also noted to be 11 per cent up to 21,154 units as against 19,013 units in the same period earlier year. The cumulative sales of Suzuki Swift, Suzuki Mehran and Suzuki Bolan registered growth of 29 per cent over previous year to 51,073 units, contributing about 55 per cent share to the total volumetric sales.
The analyst thought that the higher sales of Suzuki Mehran and Suzuki Bolan were mainly because of deliveries against the yellow cab scheme launched by the Government of Punjab.
Resultantly, total monetary sales of the company rose 24 per cent to Rs52.72billion in the latest year, as against the sales of Rs42.64billion in 2010.
Similarly, cost of sales also jumped 22 per cent primarily because of weak Pakistan Rupee-Japanese Yen parity.
The analyst calculated that depreciation of one per cent in Rupee-Yen parity, resulted in an additional burden of around 2.39 per cent on the cost of sales.
The company reported gross profit of Rs1.87billion with gross margin at 3.55 per cent in 2011, compared to gross profit of Rs1billion and gross margin of 2.35 per cent, the year earlier.
Source: http://www.dawn.com/2012/03/20/pak-suzuki-posts-profit-at-rs794m.html
The results showed 3.76 times higher earnings over PAT at Rs211 million and eps at Rs2.57 in the earlier year.
The board also recommended cash dividend at Rs2 per share.
Analyst Nauman Khan at brokerage Topline Securities said that the improved earnings could be attributed to 24 per cent increase in company’s sales on the back of, firstly increase in per unit price and second, 17 per cent increase in volumetric sales.
Furthermore, company’s gross margin improved by 119bps to stand at 3.5 per cent as compared to 2.4 per cent in the same period last year as increase in the unit prices more than offset the impact of rising Japanese Yen.
Moreover, on account of higher volumetric sales ‘other income’ also increased by 8 per cent to Rs620 million, from Rs575 million last year.
Analyst Mohammad Sarfraz Abbasi, analyst at brokerage Summit Capital, digged deeper into the accounting figures.
He concluded that higher prices and volumetric sales were the reason for the substantially higher profit in 2011.
During the year, average prices of the cars stood at about 6.4 per cent higher than the previous year whereas total sales of cars were up by a substantial 17 per cent to 92,339 units as against the total sales of 78,638 units in 2010.
Sale of Suzuki Motorcycles was also noted to be 11 per cent up to 21,154 units as against 19,013 units in the same period earlier year. The cumulative sales of Suzuki Swift, Suzuki Mehran and Suzuki Bolan registered growth of 29 per cent over previous year to 51,073 units, contributing about 55 per cent share to the total volumetric sales.
The analyst thought that the higher sales of Suzuki Mehran and Suzuki Bolan were mainly because of deliveries against the yellow cab scheme launched by the Government of Punjab.
Resultantly, total monetary sales of the company rose 24 per cent to Rs52.72billion in the latest year, as against the sales of Rs42.64billion in 2010.
Similarly, cost of sales also jumped 22 per cent primarily because of weak Pakistan Rupee-Japanese Yen parity.
The analyst calculated that depreciation of one per cent in Rupee-Yen parity, resulted in an additional burden of around 2.39 per cent on the cost of sales.
The company reported gross profit of Rs1.87billion with gross margin at 3.55 per cent in 2011, compared to gross profit of Rs1billion and gross margin of 2.35 per cent, the year earlier.
Source: http://www.dawn.com/2012/03/20/pak-suzuki-posts-profit-at-rs794m.html
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