Pak Suzuki Motor Company reported a profit of Rs993.7 million for the quarter ended September 30, 2021 mainly due to a massive rise in other income and a plunge in finance cost.
According to a notification sent to the Pakistan Stock Exchange on Thursday, the company had reported a loss of Rs547 million for the same quarter of 2020.
Earnings per share of the carmaker came in at Rs12.07 during the July-September 2021 quarter compared to loss per share of Rs6.65 in the corresponding quarter of last year.
During the quarter under review, the automobile company reported a 122% jump in net sales to Rs50.3 billion. It had fetched Rs22.6 billion in net sales during July-September 2020.
In a report, Arif Habib Limited analyst Arsalan Hanif underlined that net sales of the company increased on the back of a low base effect and a volumetric jump of 120% year-on-year to 38,431 units.
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“Gross margins came in at 5.3% in the quarter against 5.16% in the same quarter of 2020,” he said. “Despite depreciation of the rupee against the dollar, gross margins increased primarily due to the economies of scale.”
Other income skyrocketed nearly 200% as it rose from Rs141.6 million in July-September 2020 to Rs423.3 million in the corresponding quarter of 2021.
“Other income increased due to higher cash and bank balances,” Hanif said.
On the other hand, finance cost of the carmaker plunged 91.3% to Rs76.7 million in the quarter under review. The company had reported an outflow of Rs885.9 million under the same head in the corresponding period of previous year.
Published in The Express Tribune, October 29th, 2021.
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