Pak Suzuki Motor Company Limited (PSMC) reported a loss of Rs. 460 million during the same period last year, but has now reported its highest-ever loss after tax (LAT) of Rs. 12.91 billion for the first quarter that concluded on March 31st, 2023 (1Q2023).
As a result of higher-than-anticipated finance costs, the outcome fell short of industry expectations. The cost of financing, which includes currency loss, markup for delayed deliveries, and demurrage and detention fees, increased by 12x annually and by 3x quarterly to Rs. 12.8 billion.
Recall that the company stated in its most recent financial report that the devaluation of the rupee after the end of the year versus the US dollar had caused an unrealized loss of Rs. 9 billion, which would affect the 2023 financial performance.
In spite of recent price increases and production slowdowns, the company’s net sales fell by 54 per cent year over year (YoY) to Rs. 21.8 billion from Rs. 47.7 billion last year.
According to the automaker’s financial statistics for the first quarter of 2023, the business reported a loss of Rs. 156 per share, up from Rs. 5.59 per share the previous year.
The company’s gross profit rose by 47% year over year, from Rs. 1.35 billion to Rs. 1.98 billion. Despite the increase in automobile prices, gross margins for the reviewed period came in at 9.1%, which is a little lower than the previous quarter. Due to a drop in bookings, other income during the first quarter of 2023 fell by 86 percent to Rs. 73.7 million from Rs. 527.3 million.
