Huge loss to Pak Suzuki Motors

KARACHI (26th Oct, 2019): Pak Suzuki Motors turned red in the quarter ended 30th September 2019, on declining sales percentage which reported a loss as against profit incurred during the same period last year.

Pak Suzuki Motor Company Limited announced its third quarter of 2019 financial result where the company declared a loss of Rs 1.161 billion with loss per share clocked at Rs 14.11, compared to a profit after tax of Rs 95 million or EPS of Rs 1.15 in same period of 2018.

The sales of the company in the third quarter decreased by five percent to Rs 25.6 billion while in the nine months or from January 2019 to September the sales rose by two percent to stands around Rs 91.123 billion.

In nine months the company suffered a loss of Rs 2.6 billion as compared with Rs 1.392 billion profit.

These numbers according to an analyst reflect that half of the loss incurred in the third quarterly mostly because of sales decline arrived because of higher interest rates, higher car prices and falling economic activity, squeezing purchasing power of the common man.

According to a research report of highly reputed brokerage house, during nine months of 2019, total industry sales were at 157,216 units, down 21.6 percent compared with same period a year earlier, where Honda Atlas sold 24,410 vehicles, down 39.2 percent on year on year basis undergoing its worst cumulative sales decline.

Pak Suzuki sales were down by 15.4 percent to 88,307 units and Indus sales were also down by 18.4 percent to 39,475 units, approaching historic low.

Report Courtesy: Haris Zamir (Dunya News)

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