Corporate results: Pak Suzuki first quarter earnings up by 114%

Comes after sharp rise in volumetric growth, reports Topline Securities.

KARACHI: Pak Suzuki – the largest carmaker in the country – has posted a net profit of Rs946 million in the first quarter (Jan-Mar) of calendar year 2015, up by a massive 114% compared to the same period previous year.

Earnings per share (EPS) jumped to Rs11.5 from an EPS of Rs5.4 in the period under review.

The result was in line with market consensus estimate, Topline Securities reported on Friday.

The revenue of the company showed a growth of 43% year-on-year to Rs19.6 billion, owing to a 55% year-on-year volumetric growth. The company sold 30,950 units in the first quarter of calendar year 2015 compared to 20,022 units in the corresponding period of last year.

Gross margins of the company improved by 401 basis points to 11.1% in the first quarter of 2015 compared to 7.1% in the same quarter last year.

“We attribute this improvement to the favourable exchange rate of the Pak rupee against both dollar and yen,” the report added.

The distribution cost of the company surged by 229% year-on-year to Rs503 million.

On quarter-on-quarter basis, revenue of the company also witnessed an impressive growth of 56% whereas, gross margins improved by 426 basis points from 6.8% in the fourth quarter of 2014.

Published in The Express Tribune, April 25^th, 2015.

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