PHOTO:FILE
Earnings per share (EPS) declined to Rs33.69 in 2016 compared with Rs70.99 a year earlier.
Along with the results, the company also announced a final cash dividend of Rs5.50 per share. In 2015, the dividend amounted to Rs15 per share.
Pak Suzuki stock price closed up 0.12% at Rs665.85 at the PSX. Overall, the benchmark KSE 100-share Index rose 0.66% at 49,020 points.
The carmaker sold 27,254 units during the fourth Oct-Dec quarter, down 26% year-on-year. After normalisation of the effects of inflated sales volumes under Punjab government’s Apna Rozgar Taxi Scheme, the company posted a 21% growth year-on-year, according to a report of Topline Securities.
Owing to the assembly of 50,000 units of Suzuki Bolan and Suzuki Ravi under the taxi scheme, Pak Suzuki’s sales had surged in the previous year.
The company managed to sell 109,758 units in 2016, down 18% year-on-year, but up 21% if taxi sales were excluded.
In terms of growth, Suzuki Wagon R remained the most impressive variant with volumes reaching 13,209 units in 2016, up 75% year-on-year.
The decline in earnings came mainly on the back of 18% year-on-year fall in overall volumes. During 2016, a 44% decline in sales of both Bolan and Ravi variants was seen due to the culmination of the taxi scheme, which led to the overall volumetric decline.
Gross margins plunged 398 basis points year-on-year to 9.6% in 2016 on account of 10% appreciation in the Japanese yen against the dollar and about 16% rise in steel prices that led to higher input costs for the company, according to a JS Research report.
Published in The Express Tribune, March 22nd, 2017.
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