Pak Suzuki Motor Company reported a profit of Rs777.8 million for the quarter ended March 31, 2021 primarily due to a spike in sales which had remained muted last year in view of the nationwide lockdown.
According to a notice sent by the company to the Pakistan Stock Exchange (PSX) on Thursday, Pak Suzuki had reported a loss of Rs941.1 million during the same quarter of last year. Accordingly, earnings per share of the carmaker amounted to Rs9.45 during the first three months of 2021 against loss per share of Rs11.44 in the corresponding period of previous year.
Net sales of the company soared 103.5% to 36.1 billion during the period under review. The company had made sales of Rs17.7 billion in the corresponding quarter of the previous year.
JS Global analyst Ahmed Lakhani told The Express Tribune that the firm went from loss last year to a profit during the first quarter of calendar year 2021 primarily because sales have doubled.
He recalled that due to the lockdown imposed during March last year, business activity of the company came to a standstill, which had caused it to report a loss.
Marketing and distribution expenses of the company skyrocketed 121.5% as they rose from Rs320.6 million during January-March 2020 to Rs710.2 million during the same period of the current year.
Moreover, administration expenses increased 15.2% to Rs666 million. The company had reported administration expenses of Rs577.7 million in the same quarter of last year.
Other incomes soared 9.5 times to Rs619.2 million during the quarter against Rs64.8 million in the same quarter of last year.
Published in The Express Tribune, April 23rd, 2021.
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