Profit rises due to sale of over 59,000 units, up almost 47%. STOCK IMAGE
KARACHI: Higher sales in the first six months of 2015 pushed earnings of Pak Suzuki Motor Company up by 134%, a stock filing said on Friday.
Net profit for the car manufacturer stood at Rs2.4 billion for January-June as a result of a 37% rise in sales that amounted to almost Rs40 billion.
Shajar Capital attributed the increase of over one-third in the company’s topline to the sale of over 59,000 units, up almost 47% from the number of units sold in the first six months of 2014.
Read: Stocks close flat as volumes remain thin
“The Punjab taxi scheme led higher growth in Ravi (up 138% year-on-year) and Bolan (up 124% year-on-year) while Suzuki Wagon recorded 118% uptick in sales during the period.
However, Swift, Cultus and Mehran registered about 33%, 3% and 9% growth, respectively, in Jan-Jun year-on-year,” it said.
The gross margin was 12.7% in Jan-Jun on the back of lower steel prices, consistent rupee-dollar parity and weaker Japanese yen, it added.
Read: Pak Suzuki registers profit of Rs1.93 billion
The volumetric increase also resulted in a rise of 148% in the distribution cost that amounted to Rs1.1 billion during the six-month period.
Published in The Express Tribune, August 8th, 2015.
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