April 23, 2019 (MLN): Pak Suzuki Motors Company has observed losses of Rs. 980 million for the quarter ended March 31, 2019, as compared to profits of Rs. 904 million earned in the same period last year. This is the second consecutive quarterly loss recorded by the company, after LPS of Rs. 1.15 recorded in 4QCY18.
The company’s turnover increased by 9.3% due to multiple hikes in average car prices. However, fall in volumetric sales by 4.4% kept the top-line earnings on ground.
The cost of sales grew by a relatively larger margin of 15.35%, primarily due to PKR devaluation and higher commodity prices. This led to a negative change in the company’s Gross Profit Margins.
While the company indulged in less marketing activities during the quarter, the Administrative cost on the other hand increased sharply by 25.7%, which further dragged down the overall earnings of the company.
The company’s Loss per share (LPS) for the aforementioned period stood at Rs. 11.92, as compared to Rs. 10.99 recorded in the corresponding period last year.
Profit and loss account for the quarter ended March 31 2019 (Rupees'000) | |||
|---|---|---|---|
Mar-19 | Mar-18 | % Change | |
Turnover | 34,447,138 | 31,510,787 | 9.32% |
Cost of Sales | -33,328,702 | -28,893,992 | 15.35% |
Gross Profit | 1,118,436 | 2,616,795 | -57.26% |
Distribution costs | -742,967 | -803,827 | -7.57% |
Administrative expenses | -626,546 | -498,299 | 25.74% |
Finance costs | -326,805 | -73,344 | 345.58% |
Other income | 49,981 | 176,112 | -71.62% |
Workers' profit participation fund | – | -70,846 | |
Workers' welfare fund | – | -26,922 | |
Share of loss of equity accounted investee | -739 | -502 | 47.21% |
(Loss)/Profit before taxation | -528,640 | 1,319,167 | |
Taxation | -452,104 | -415,024 | 8.93% |
Net (Loss)/Profit for the period after Tax | -980,744 | 904,143 | |
(Loss)/Earning per share-basic | -11.92 | 10.99 | |
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