Earnings of Pak Suzuki Motor Company, country’s largest automobile assembler received a massive dent as the company declared a loss of Rs 1.53 billion in the quarter ended June 2019.
According to notification sent to the Pakistan Stock Exchange (PSX) on Wednesday, Pak Suzuki reported a profit of Rs 1.3 billion in the same period last year. Pak Suzuki recorded loss per share of Rs 18.53 in the period from January to June 2019, compared to earnings per share of Rs 15.77 in the same period of previous year.
Company’s gross profit plunged 74.7% to Rs 1.37 billion in the period under review from Rs 4.37 billion in the previous year. According to analysts, this is mainly due to significant rupee depreciation against the US dollar coupled with the inflationary environment leading to high input costs.
On the other hand, finance cost surged a massive 660.7% to Rs 706.4 million from Rs 92.9 million in the previous year due to addition of short-term borrowing. Meanwhile, other income also declined 74.8% during the 6-months period to Rs 97.97 million on the back of low income from bank deposits as the company reduced cash balance in its accounts after decline in advance payments from its customers.
Pak Suzuki in the first 6 months of this year sold 66,420 vehicles which is 11% less when compared to 74,846 units sold in the same period last year.