Car assemblers’ profits up 100% in last quarter
All car assemblers including Indus Motor, Pak Suzuki and Honda Atlas have announced quarterly or full-year results.
Car assemblers have posted a 100 per cent earnings growth during April to June versus the same period last year, according to Topline Securities.
All car assemblers including Indus Motor, Pak Suzuki and Honda Atlas Car have announced their quarterly or full-year results except for Dewan Motors whose board meeting is not announced yet.
The three major car assemblers have more than 90 per cent share in local car sales.
Pak Suzuki secured the highest profitability growth of 330 per cent, Indus Motor 55 per cent while Honda Atlas Car remained in the red though its losses dropped, according to the data compiled by Topline Research.
Higher volume sales: prime earnings catalyst
However, the sector’s gross margins remained almost flat at six per cent during the previous quarter against the same period last year, but a sharp recovery in sales remained the major earnings driver, said Topline Securities analyst Furqan Punjani in the company report.
Resultantly, net revenues grew by 72 per cent to Rs37.5 billion during the period under review.
Car sales jumped 50 per cent this year on the back of gradual economic recovery, improving auto financing schemes and strong demand from rural areas.
Indus Motor volumes increased by 49 per cent while those of Pak Suzuki rose 46 per cent and Honda witnessed an increase of 27 per cent during fiscal year 2010.
Other than volumes, growth in bottom-line was also supported by higher other income which stood at Rs665 million compared with Rs492 million last year. This mainly includes income earned on bank deposits and that is primarily due to higher cash received from advance booking which led car assemblers to place the excess cash in high-yielding bank deposits.
Published in The Express Tribune, August 31st, 2010.
All car assemblers including Indus Motor, Pak Suzuki and Honda Atlas Car have announced their quarterly or full-year results except for Dewan Motors whose board meeting is not announced yet.
The three major car assemblers have more than 90 per cent share in local car sales.
Pak Suzuki secured the highest profitability growth of 330 per cent, Indus Motor 55 per cent while Honda Atlas Car remained in the red though its losses dropped, according to the data compiled by Topline Research.
Higher volume sales: prime earnings catalyst
However, the sector’s gross margins remained almost flat at six per cent during the previous quarter against the same period last year, but a sharp recovery in sales remained the major earnings driver, said Topline Securities analyst Furqan Punjani in the company report.
Resultantly, net revenues grew by 72 per cent to Rs37.5 billion during the period under review.
Car sales jumped 50 per cent this year on the back of gradual economic recovery, improving auto financing schemes and strong demand from rural areas.
Indus Motor volumes increased by 49 per cent while those of Pak Suzuki rose 46 per cent and Honda witnessed an increase of 27 per cent during fiscal year 2010.
Other than volumes, growth in bottom-line was also supported by higher other income which stood at Rs665 million compared with Rs492 million last year. This mainly includes income earned on bank deposits and that is primarily due to higher cash received from advance booking which led car assemblers to place the excess cash in high-yielding bank deposits.
Published in The Express Tribune, August 31st, 2010.