Pak Suzuki Motor Company witnesses profit of Rs 947m

The net earnings of Pak Suzuki Motor Company Limited increased to Rs 947 million during financial year ended December 31, 2015, according to an official notification sent to the Pakistan Stock Exchange on Thursday.

The Pakistani affiliate of Japanese automaker reported an after-tax profit of Rs 947 million or Rs 11.51 per share during the quarter under review, up 0.16 per cent when compared with Rs 946 million or Rs11.5 per share of the corresponding period of 2015.

Following the results, the stock depreciated by Rs 8.81 or 2.19 per cent compared with Rs 401.56 of the previous day and traded at Rs 392.75 per share at the close of market on Thursday with 130,900 shares traded during the day.

The result is below street consensus, say analysts. “Low margins and higher admin costs pressed net earnings to Rs 948 million in the first quarter,” it added.

The sales of the makers of Mehran clocked in at Rs 19.9 billion during the first quarter of 2016, an increase of 1.7 per cent compared to Rs 19.6 billion it earned in sales during the corresponding period of the last year.

Topline Securities attributed the increase in revenue to car price hike which was announced in Jan 2016 and low proportion of taxis which were given to the govt of Punjab.

Founded in September 1982, the PSMCL was a joint venture between the government of Pakistan and Suzuki Motor Japan. Pak Suzuki is the leader in Pakistan’s automobile market having more than 60 per cent share overall lacking serious competition.