The business announced in a formal notification to the Pakistan Stock Exchange (PSX) that the closure of the automobile and motorcycle assembly factory, which will occur from May 2 to May 9, 2023, was due to a scarcity of stock.
In the first quarter of 2023 (Q1,2023), which ended on March 31st, Pak Suzuki Motor Company Limited (PSMC) reported its highest-ever loss after tax (LAT) of Rs. 12.91 billion. In the comparable period of the previous year, the company reported a loss of Rs. 460 million.
The outcome was brought on by higher-than-anticipated financial charges. To Rs. 12.8 billion, the finance cost—which includes exchange loss, markup for late delivery, and demurrage and detention fees—rose 12 times annually and 3 times quarterly.
In spite of recent price increases and production slowdowns, the company’s net sales fell by 54 percent year over year (YoY) to Rs. 21.8 billion from Rs. 47.7 billion last year. The majority of automakers have blamed the State Bank of Pakistan’s (SBP) reluctance to approve letters of credit (LCs) for the clearance of imported goods, which has forced plants to close production.
