Pak Suzuki's profitability jeopardized by increased operating expenses

MG News | October 23, 2018 at 01:29 PM GMT+05:00

0:00

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 30^th 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

Copyright Mettis Link News

Related News

Name	Price/Vol	%Chg/NChg
KSE100	140,009.99 119.71M	1.15% 1597.74
ALLSHR	86,715.79 244.09M	1.18% 1012.83
KSE30	42,797.13 67.16M	1.28% 542.29
KMI30	197,222.53 70.95M	1.60% 3112.94
KMIALLSHR	57,545.91 125.04M	1.47% 832.24
BKTi	38,195.75 8.30M	0.96% 364.41
OGTi	28,500.56 32.46M	3.86% 1059.92

Symbol	Bid/Ask	High/Low

Name	Last	High/Low	Chg/%Chg
BITCOIN FUTURES	119,510.00	119,530.00 117,905.00	1890.00 1.61%
BRENT CRUDE	72.20	72.82 72.16	-1.04 -1.42%
RICHARDS BAY COAL MONTHLY	96.50	0.00 0.00	2.20 2.33%
ROTTERDAM COAL MONTHLY	104.50	104.50 104.50	-0.30 -0.29%
USD RBD PALM OLEIN	998.50	998.50 998.50	0.00 0.00%
CRUDE OIL - WTI	69.83	70.41 69.80	-0.17 -0.24%
SUGAR #11 WORLD	16.46	16.58 16.37	-0.13 -0.78%