Pak Suzuki Motor Company Limited (PSMC) in the first quarter (Jan-Mar) 2018 posted a profit after tax (PAT) of Rs0.9 billion with earnings per share of Rs10.99, down by massive 31 per cent Year on Year (YoY) as against a PAT of Rs1.3 billion in the same period last year.
Sales revenue in first quarter 2018 grew by 32 per cent YoY on the back of a 58000 units increase in off-takes (up 18 per cent YoY), thanks to the impressive sales of Wagon-R, Cultus, and Mehran, and a 4 per cent YoY increase in average selling prices.
Gross margin for the quarter fell by 3.85 percentage points YoY on the back of an 18 per cent YoY increase in steel prices, and 11 per cent rupee depreciation against the Japanese Yen (JPY). This dented earnings considerably as gross profit fell by Rs287 million with an EPS of Rs3.49 per share.
On a quarterly basis, the OEM registered a handsome 24 per cent QoQ growth in earnings, on the back of a 7 per cent QoQ rise in sales revenue owing to better off-take (+16000k cars QoQ). Higher average prices meant that gross margins saw an uptick of 51bps QoQ, despite rising steel costs and a constantly falling Pakistani rupee.