Pak Suzuki suffers losses of Rs17.23 million due to rising production costs

Pak Suzuki Motor Company Ltd. (PSMC) reported its half-yearly results, which were completed on June 30, 2022. The company reported a net loss of Rs17.23 million against a net profit of Rs1.19 billion, according to the automaker’s latest filing on the Pakistan Stock Exchange (PSX).

According to Mettis Global, the company’s sales revenue climbed 30 per cent YoY, from Rs66 billion to Rs112, 62 billion, mostly due to volumetric growth and pricing increases.

As a result of growing input costs and the significant depreciation of the local currency, the gross margins during 1HFY22 decreased from 5.98 per cent to 3.74 per cent.

Regarding the company’s primary expense heads, distribution and marketing costs came in at Rs1.64 billion, up 30 per cent YoY, while administration costs dipped to Rs1.48 billion, up 11 per cent YoY.

In contrast to Rs866 millionn in 1HFY21, the company additionally received Rs1.56 billion in other income.

Furthermore, as a result of rising interest rates, finance costs increased by 6.2x YoY, from Rs292 million to Rs1.8 billion.

The company also paid Rs767.84 million in taxes, which represents an increase of 57 per cent YoY because of the impact of super taxes.