Pakistan Suzuki Motor Company’s net profit surged by 73% to Rs672 million in the first nine months of 2011 on higher sales revenue.
The improved earnings are primarily on account of increase in car prices and 17% surge in volumetric sales, said Topline Securities analyst Furqan Punjani.
Net sales rose 22% to Rs38.5 billion compared with Rs31.5 billion in the same period last year.
Furthermore, the company’s gross margin improved by 68 basis points to stand at 3.8% compared with 3.1% in the same period last year as increase in unit prices covered the impact of rising Japanese yen, added Punjani.
Furthermore on account of higher volumetric sales, other income also increased by 5% to clock at Rs464 million compared with Rs442 million last year.
The company’s stock price rose Rs2.71 to close at Rs68.28 during trade at the Karachi Stock Exchange on Wednesday.
Alone in the third quarter, Suzuki witnessed a four-fold increase in profitability to post an earnings per share of Rs4.77 compared with Rs1.32 in the same period last year.
Average prices rose by 8% during the quarter on yearly basis, which enabled the company to further uplift revenue.
Published in The Express Tribune, October 27th, 2011.
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