KARACHI: Pak Suzuki Motor Company (PSMC) announced its 1QCY19 ended March 31, 2019 financial results wherein the company booked net loss of PKR 981 million translating into loss per share (LPS) of PKR 11.92 versus profit after tax of PKR 904 million and earning per share (EPS) of PKR10.99 registered during the same quarter last year.[the_ad id=”31605″] “Earnings arrived below our expectations due to lower than anticipated gross margins and hefty tax charge,” Muhammad Ahmed at Pearl Securities said.
Sales revenues improved 9% YoY to PKR 34.447 million in 1QCY19 mainly on account of higher selling prices during the quarter.
Gross profits registered decline of 57% YoY at PKR 1.118 million in 1QCY19 whereas gross margins arrived 5.1 pps YoY lower at 3.2% during 1QFY19 due to PSMC’s inability to pass on full impact of rising production cost.
Finance cost increased exponentially by 346% YoY owing to higher short term borrowings whereas other income declined 72% YoY in 1QCY19. Despite pre-tax earnings arriving in negative, the company booked tax charge of PKR 452 million during the quarter which further exacerbated the profit.