[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pak Suzuki Motor Company Limited (PSMC) has announced its highest-ever after-tax loss of Rs. 6.33 billion for the fiscal year (CY) that ended on December 31, 2022.
In the same period last year, the company earned Rs. 2.67 billion in profit. According to estimates, CY22 losses are primarily due to massive taxation totaling Rs. 3.19 billion, which is 186 percent higher than the Rs. 1.11 billion in taxes paid in CY21.
Due to various price increases, the company’s net sales increased by 26.5 percent to Rs. 202.46 billion from Rs. 160.08 billion.
According to the automaker’s financial results for CY22, the company lost Rs. 77 per share, compared to Rs. 32.56 per share the previous year.
Gross margins increased to 5.8 percent in 2022, up from 5.1 percent the previous year.
According to a stock filing, the Company had outstanding foreign liabilities of $184 million at the end of the fiscal year on December 31, 2022, which increased to the equivalent of $218 million after the year-end.
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“Upto 31 December 2022, the Company incurred an exchange loss of Rs. 3.55 billion on foreign currency transactions and balances. Following year-end, the PKR to USD parity has deteriorated further, resulting in a massive unrealized loss of Rs. 9 billion (approximately), which may have an impact on the Company’s equity in 2023.
If the foreign currency liability is not paid due to restrictions imposed by the State Bank of Pakistan, the company’s exchange loss will increase, negatively impacting its equity in the fiscal year 2023, according to the filing.
The company’s gross profits increased by 43% to Rs. 11.68 billion from Rs. 8.17 billion in the same period last year.
Other income increased by 44.5 percent to Rs. 3.21 billion from Rs. 2.22 billion.
Finance costs increased by nearly 16 times year on year to Rs. 11.61 billion, compared to Rs. 737.04 million in the same period last year, due to an increase in markup on delayed delivery and higher demurrage and detention charges.
Finally, the company has budgeted Rs. 3.19 billion in taxation for 2022, up from Rs. 1.11 billion in 2021.
PSMC’s stock closed at Rs. 118.40 on Monday, down Rs. 3.18 or 2.62 percent, with a turnover of 538,033 shares.
Slump in Sales
PSMC’s sales have plummeted for the second time this year as a result of insufficient inventory and import restrictions.
According to the most recent Pakistan Automotive Manufacturers Association (PAMA) report, Pak Suzuki sold fewer than 1,000 units in February. This is the automaker’s worst performance since the countrywide COVID-19 lockdowns in April 2020, which resulted in zero production and sales.
Profits will continue to suffer as a result of the ongoing production issues.[/vc_column_text][/vc_column][/vc_row]
