For the quarter ending March 31, calendar year (CY) 2022, Pak Suzuki Motor Company Limited (PSMC) reported a loss after tax of Rs. 460.22 million.
The automobile maker made a profit of Rs. 778 million during the same period last year.
The losses were caused by a rise in finance charges, a steep drop in other income, and a greater cost of production, according to the automaker’s financial statements.
However, the company’s net revenues climbed by 32% YoY to Rs. 47.736 billion in 1QCY22 from Rs. 36.098 billion the previous year, owing to higher volumetric sales and upward revisions in automobile pricing.
Despite flattish gross margins sequentially, the loss was unexpected, with the largest divergence coming from greater than expected finance costs and lower than expected other revenue.
During the period under review, the company’s gross margins decreased by 3.29 percent YoY to 2.83 percent. Higher cost pressure (mostly freight and steel costs) and currency devaluation contributed to the reduction.
Gross profits fell by 39% to Rs. 1.349 billion in the same time previous year, from Rs. 2.209 billion. Similarly, the company’s other income decreased by 15% to Rs. 527 million from Rs. 619 million due to lower cash and cash balances income.
The company’s financing costs climbed by 312 percent year over year to Rs. 1.031 billion million, owing to factors such as increased payments on late deliveries, increases in client advances, and currency rate losses.
The company posted a loss of Rs. 5.59 per share, compared to a profit of Rs. 9.45 per share in the same period last year.
On Tuesday, PSMC’s stock closed at Rs. 200.49 on the stock exchange, down Rs. 12.21 or 5.74 percent, with 152,043 shares traded.