Skip to main content

Pak Suzuki posts almost double profits

< >

Pak Suzuki posts almost double profits

By Our Correspondent
Published: October 26, 2012
PSMC posted a loss of Rs193 million in the period, against analyst expectations of a profit. 


KARACHI: Pak Suzuki Motor Company (PSMC) has announced almost double profits for the 9MCY12 period, as compared to the same period last year, in its financial result announcement on Thursday. The company’s net profit has swelled to Rs1.17 billion in 9MCY12, as compared to Rs672 million in 9MCY11.

Strong growth in the company’s net sales were the primary driver behind growth, which boomed 24% year-on-year (YoY) to Rs47.90 billion on the back of higher prices and number of units sold.
“Exceptional volumes (up by 17% YoY) coupled with continuous price increases (of almost 7%) helped to keep the gross margins up by 90 basis points to 4.6% in the period under review,” said analyst Zoya Ahmed, who works with BMA Capital.
On a quarterly basis, however, the company’s result paints a gloomy picture. PSMC posted a loss of Rs193 million in the period, against analyst expectations of a profit.

“The deviation in estimates has come about due to incremental costs associated with upgrading variants to Euro-II compliance alongside higher than expected distribution costs,” said AKD Securities analyst Hassan Quadri.

The loss is also attributable to lower sales because of the suspension of the highly demanded Alto car, coupled with a fall in Mehran and Bolan sales post completion of the Government of Punjab’s yellow cab scheme.

Summit Capital analyst Muhammad Sarfraz Abbasi says that “higher prices of locally manufactured variants and availability of low-price alternatives in terms of imported cars have impacted the company’s sales in 3QCY12.”

Published in The Express Tribune, October 26th, 2012.
Source: http://tribune.com.pk/story/456950/pak-suzuki-posts-almost-double-profits/ 

Comments

Post a Comment

Popular posts from this blog

Dark days for fertiliser industry continue

Dark days for fertiliser industry continue Published: December 28, 2011 Sales of urea, the most widely used fertiliser, declined by 5% in the period from January to November 2011 due to persistent gas outages faced by manufacturers which has led to a drop in production levels. The four plants which are on the Sui Northern Gas Pipelines Limited network remained the main victims of the chaotic situation due to gas shortage. The dark days are expected to continue as the government in a new gas load management plan has agreed to cut-off gas supply to the four plants on the SNGPL-based pipeline. The four plants include Engro Corporation’s Enven, Pak-Arab Fertilizer, Agritech Fertilizer and Dawood Hercules Fertilizer. Similarly, another fertilizer, di-ammonia phosphate (DAP) witnessed a decline in sales by 18% to 1.01 million tons on a yearly basis against 1.24 million tons in the same period last year, according to data released by National Fertiliser Development Centre on Tuesday....
Post a Comment
Read more

Corporate results: Pak Suzuki posts lower than expected results

                           Corporate results: Pak Suzuki posts lower than expected results By  Farhan Zaheer Published: October 31, 2013 Pak Suzuki sold 59,292 cars in 9MCY13 compared to 69,589 in the same period of last year, down by a significant 15% YoY. PHOTO: FILE KARACHI:  Pak Suzuki Motor Company – the biggest automobile manufacturer by market share in Pakistan – has posted a handsome earning of Rs371 million in the July-September quarter, against a loss of Rs193 million in the corresponding period last year. The company recorded per share earnings of Rs4.51 in the third quarter of 2013 against a loss per share of Rs2.35 last year. In comparison to the third quarter of previous year, the company’s gross profit increased significantly to Rs890 million against a negative growth of Rs49 million. However analysts had projected better results, blaming the ...
Post a Comment
Read more

Why Imran Khan is so obsessed with investigating last 10 years national debt?

The country went gaga over the announcement of the Prime Minister that after putting focus of the government to stabilize the economy he is all set to go after those who are responsible of leaving the country massively indebted. The nation felt the heat of Prime Minister’s ambition for the across the board accountability when he said he could not be blackmailed with protests. He further showed his determination by saying even if my life goes, I will not leave these thieves alone - I had prayed to God to give me one chance. The Prime Minister told the nation that he is going to form a high-powered inquiry commission with a one point agenda to diagnose how did the previous governments increase the debt by Rs . 24,000 billion to Rs.30,000 billion from Rs.6,000 billion merely in 10 years? The Prime Minister further unleashed his game plan by elaborating the possible formation of the commission which shall consist of the Federal Investigation Agency (FIA) , Intelligence Bureau ( ...
1 comment
Read more