The company is expected to announce profit after tax of Rs1.1b (EPS Rs12.83) in CY11, up massively by 4x YoY.
“A 17 per cent YoY rise in unit sales coupled with nine per cent YoY increased sales proceeds are expected to support the bottomline,” said Abdul Azeem of InvestCap.
Moreover, the analyst said, another factor which was expected to contribute more is the company’s other income that was projected to post an 11 per cent YoY increase.
On QoQ basis, he said, the last quarter of CY11 was estimated to reduce company’s bottomline by 2.3 per cent QoQ to Rs384m (EPS Rs4.66) due to decline in unit sales by five per cent QoQ.
As customers prefer to book vehicles with the new year registration, therefore, during the last quarter the unit sales of the company remained dull, Azeem said.
Thus, amid decline in vehicle booking, other income, which mostly comes from the advances from customers, was hurt during the quarter, which is expected to decline 10 per cent QoQ. We expect Rs1.00/share dividend with the results.
During CY11, the company’s cash balance is expected to have reached at Rs8bn, which is expected to add Rs473mn (Rs5.74/sh) to the company’s bottomline. The massive surge in the unit sales by 17 per cent YoY has helped the company to book such a significant amount in the bottomline.
A far as margins are concerned, the gross margins of the company is expected to post a significant improvement of 185bps to 4.2 per cent in CY11 as the company increased its product prices by five times during the CY11 (9 per cent YoY) while change in the sales of the product mix is also expected to provide some support to the bottomline.
With the improvement in other income by 11 per cent YoY, the net margin of the company is also expected to rise by 145bps to 1.95 per cent in CY11.
PSMC’s unit sales went up by 17 per cent YoY to 92.9k units. The new swift recorded a massive growth of 53 per cent YoY to 5.9k units during CY11.
Mehran posted a 28 per cent YoY growth with 29.5k units sales. The company sold 12.9k units of its Alto model coupled with 12.9k units of Cultus. Bolan and Ravi also showed a increase of 23 per cent YoY to 15.7k units and 4.9 per centYoY to 14.97k units respectively, in CY11 while only Liana posted a decline of 26 per centYoY to 481 units.
During CY11, the Government of Punjab’s Green Texi scheme helped the company to improve its unit sales as the Punjab gov’t selected Suzuki’s Bolan and Mehran for the scheme in CY11.