In the recent reports, Pak Suzuki Motor Company has gone from profit to loss in the first quarter of 2019 as their earnings faced a massive decline because of the Pakistani currency devaluation and termination in the production of the most-budget and economy car, Mehran.
Ending on March 31st, the financial results of Pak Suzuki Motors showed a total loss of Rs. 980 Million. However, in the same quarter of the previous, company reported a total profit of Rs. 904 million, which is the biggest loss company has seen in the last 10 years.
Pak Suzuki Motors announced this when they sent back the Financial Results of the first quarter of 2019 back to Karachi Stock Exchange.
The best domestic auto company in Pakistan started its year with a red in the terms of profit.
In the terms of revenue, which increased 9.3% to Rs. 34.4 Billion in the Quarter of 2019 from Rs. 31.50 Billion in the previous year’s quarter.
At the cost of sales, there was a 15.33% increase to Rs. 33.32 Billion as compared to the Rs. 28.82 Billion of the last year’s first quarter. This caused a massive drop in the gross profit from last year’s Rs. 2.61 billion to Rs. 1.11 billion in this year’s quarter, making a 57.50% decline in the gross profit.
Pak Suzuki Motors also reported another big loss in the terms of shares. The earning per share fell from Rs. 11.92 to Rs 10.99 as compared to the previous year’s first quarter.
The most noticeable decline was in the Mehran’s Sales, which reported a decrease in the 24% Year-on-year. But since it is discontinued totally from this month, it will be replaced largely by the locally manufactured and assembled 660cc Alto.
The administrative costs of the company rose to Rs. 660 million, while the other income of the company fell down to Rs. 49.81 million from Rs. 176 million.