October 23, 2018 (MLN): The profits for Pak Suzuki Motors Company Limited have slithered by Rs1.7 billion, exhibiting a decline of 55.04% as per the latest notification issued by the company. The factors contributing to the plunge in profits included increased operating expenses of the company.
The increase in top-line earnings by Rs16 billion was outweighed by more than equal increase in Cost of sales by Rs17 billion, which led to an 18.05% drop in gross profits.
Moreover, the operating expenses including Distribution cost and Administrative cost exhibited hikes of 5.24% and 47.96% respectively, along with a decrease in Non-core income by 27.82% which further worsened the profitability of the company.
Even though the finance cost and taxation fell by 10.93% and 20.33% respectively, the overall impact on the ultimate profits eventually displayed a drop of 55.04%
The Earnings per share of the company also dropped by 55.04% for the nine months period ended September 30th 2018.
Profit and loss account for the nine months ended September 30th 2018 (Rupees’000) |
|||
---|---|---|---|
Sep-18 |
Sep-17 |
% Change |
|
Turnover |
89,018,472 |
72,802,282 |
22.27% |
Cost of sales |
-82,962,438 |
-65,411,921 |
26.83% |
Gross Profit |
6,056,034 |
7,390,361 |
-18.05% |
Distribution costs |
-2,073,639 |
-1,970,315 |
5.24% |
Administrative expenses |
-1,660,122 |
-1,122,011 |
47.96% |
Finance costs |
-125,147 |
-140,504 |
-10.93% |
Other income |
479,310 |
664,029 |
-27.82% |
Workers' profit participation fund |
-133,730 |
-240,309 |
-44.35% |
Workers' welfare fund |
-50,818 |
-92,048 |
-44.79% |
Profit from operations |
2491888 |
4489203 |
-44.49% |
Share of loss of equity accounted investee |
-1839 |
-14651 |
-87.45% |
Profit before taxation |
2490049 |
4474552 |
-44.35% |
Taxation |
-1097610 |
-1377616 |
-20.33% |
Net Profit for the period after Tax |
1392439 |
3096936 |
-55.04% |
Earnings per share |
16.92 |
37.63 |
-55.04 |
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