Pak Suzuki’s profit jumps 38%, amounts to Rs1.3b
Company’s sales increased 19% to Rs23.89b from Rs19.99b
PHOTO: PAK SUZUKI
KARACHI:
Pak Suzuki Motor Company Limited’s (PSMC) profit rose 38% to Rs1.30 billion in the quarter ended March 31, as sales increased with demand stemming from the arrival of Uber and Careem cab services, according to a bourse filing Tuesday.
The car manufacturing firm booked a profit of Rs947.64 million in the same quarter of the previous year.
Earnings per share surged to Rs15.88 from Rs11.51 in the corresponding period.
The result was higher than expectations. The company’s share price hit the upper limit of 5%, increasing Rs37.83 to Rs794.59 with a volume of only 2,800 shares.
According to the company’s profit and loss accounts, its sales increased 19% to Rs23.89 billion from Rs19.99 billion.
“While vehicle sales usually take-off in the first quarter of the calendar year, we believe demand also remained upbeat given the advent of popular taxi services (Uber and Careem),” Arif Habib Limited said.
Margins during the quarter improved to 12.2% by 145 basis points on a quarterly basis given the company’s reliance on the Japanese Yen which underwent a drastic 7% weakness against the dollar in the last quarter, it said.
“We also highlight a massive 3.3-times surge on quarterly basis in finance costs to Rs28 million. The company had incurred an exchange loss in same period last year, resulting in the expense shooting up to Rs81 million,” it said.
Outlook
Pertinently, as per recent news flow, the Punjab Chief Minister aims to launch an ‘Orange Cab’ Scheme catering to 100,000 unemployed youth in the country.
To recall, under the 2015 ‘Apna Rozgar’ Scheme, the Punjab government distributed a total of 50,000 Bolan / Ravi vehicles which added approximately Rs22.00-25.00/share to the company’s bottom-line, according to Arif Habib Limited.
“PSMC has yet to acknowledge any official correspondence regarding the same. We view additional order book impact (100,000 units of Bolan / Ravi) could be Rs50.00/share. Albeit, announcement and distribution may commence post budget and result in the company working at near max capacity,” it said.
Published in The Express Tribune, April 26th, 2017.
Pak Suzuki Motor Company Limited’s (PSMC) profit rose 38% to Rs1.30 billion in the quarter ended March 31, as sales increased with demand stemming from the arrival of Uber and Careem cab services, according to a bourse filing Tuesday.
The car manufacturing firm booked a profit of Rs947.64 million in the same quarter of the previous year.
Earnings per share surged to Rs15.88 from Rs11.51 in the corresponding period.
The result was higher than expectations. The company’s share price hit the upper limit of 5%, increasing Rs37.83 to Rs794.59 with a volume of only 2,800 shares.
According to the company’s profit and loss accounts, its sales increased 19% to Rs23.89 billion from Rs19.99 billion.
“While vehicle sales usually take-off in the first quarter of the calendar year, we believe demand also remained upbeat given the advent of popular taxi services (Uber and Careem),” Arif Habib Limited said.
Margins during the quarter improved to 12.2% by 145 basis points on a quarterly basis given the company’s reliance on the Japanese Yen which underwent a drastic 7% weakness against the dollar in the last quarter, it said.
“We also highlight a massive 3.3-times surge on quarterly basis in finance costs to Rs28 million. The company had incurred an exchange loss in same period last year, resulting in the expense shooting up to Rs81 million,” it said.
Outlook
Pertinently, as per recent news flow, the Punjab Chief Minister aims to launch an ‘Orange Cab’ Scheme catering to 100,000 unemployed youth in the country.
To recall, under the 2015 ‘Apna Rozgar’ Scheme, the Punjab government distributed a total of 50,000 Bolan / Ravi vehicles which added approximately Rs22.00-25.00/share to the company’s bottom-line, according to Arif Habib Limited.
“PSMC has yet to acknowledge any official correspondence regarding the same. We view additional order book impact (100,000 units of Bolan / Ravi) could be Rs50.00/share. Albeit, announcement and distribution may commence post budget and result in the company working at near max capacity,” it said.
Published in The Express Tribune, April 26th, 2017.