Please enable JavaScript to get all features available.

Pak Suzuki Records Rs. 3.8 Billion Profit in Q3 2023

Abdullah  21 Oct 2023   490
Pak Suzuki Records Rs. 3.8 Billion Profit in Q3 2023

Pak Suzuki Records Rs. 3.8 Billion Profit in Q3 2023

Pak Suzuki Motor Company Limited (PSX: PSMC) reported a noteworthy financial turnaround for Q3 2023. The company achieved a profit after tax of Rs. 3.8 billion during the quarter, a remarkable improvement compared to the Rs. 2.48 billion loss experienced in the same period in 2022.

Mixed Results for 9 Months

On the other hand, PSMC's performance for the nine months ending on September 30, 2023, exhibited mixed results. The company reported a loss after tax of Rs. 5.87 billion, which, while still a loss, marked an improvement from the Rs. 2.5 billion loss incurred in the same nine-month period in the previous year.

The positive results for the third quarter of 2023 exceeded market expectations, mainly due to higher gross margins. Despite a 34 percent decline in volumetric sales attributed to increased car prices, PSMC managed to maintain flat year-on-year (YoY) revenues for the quarter. However, on a quarter-on-quarter basis, revenue saw a significant 40 percent increase, largely driven by a 47 percent surge in car volumes.

Sales Figures and Gross Margins

During Q3 2023, PSMC's sales reached Rs. 29.9 billion, a modest 0.38 percent YoY increase. In contrast, sales for the first nine months of 2023 declined by 48 percent YoY, dropping from Rs. 142 billion to Rs. 73 billion. The gross margin for Q3 2023 stood at 14.1 percent, with a slightly lower margin of 11.4 percent for the first nine months of the year.

Changing Income Dynamics

As the number of bookings decreased, the company's other income decreased by 39 percent YoY to Rs. 1.6 billion. This was in contrast to the Rs. 2.6 billion in other income reported for the same nine-month period in 2022. During July-September, other income decreased by 28.5 percent YoY to Rs. 761 million. Remarkably, finance costs, which had severely impacted the company's bottom line in the previous nine months (Rs. 9.9 billion), turned positive during Q3 2023. The company earned a finance income of Rs. 144.5 million during the quarter, primarily due to exchange rate gains.

Expenses and Taxes

Distribution and marketing expenses increased by 19 percent YoY in the third quarter, reaching Rs. 600 million. This increase was in line with the rise in volumetric sales and higher inflation. The company paid Rs. 309 million in taxes during Q3 2023, bringing the total taxes paid during the first nine months of 2023 to Rs. 1.85 billion.

Earnings Per Share and Stock Performance

Pak Suzuki Motor Company posted earnings per share of Rs. 46.24 for Q3 2023, while the loss per share for the first nine months of 2023 was Rs. 71.34. As of the latest update, the company's stock price at the Pakistan Stock Exchange (PSX) was Rs. 205.94, marking a 7.5 percent increase, or Rs. 14.37 per share, with a turnover of 674,597 shares on Thursday. In addition to these financial results, the Board of Directors of PSMC has approved the company's delisting from the Pakistan Stock Exchange (PSX) under rule 5.14 of Voluntary Delisting.

Related Auto News Updates



Add a Comment "Pak Suzuki Records Rs. 3.8 Billion Profit in Q3 2023"

Name *
Contact No *
Email *
City *
Comment *
Question: What is capital of Pakistan?

(Answer can be from islamabad | lahore)
Comments