KARACHI: Ghandhara Nissan announced a net profit of Rs119 million in the quarter (Jul-Sep) of fiscal year 2015-16, up by a significant 159% from Rs46 million in the same quarter of last year.
Earnings per share (EPS) increased to Rs2.65 from an EPS of Rs1.02 in the period under review. The company announced an interim cash dividend of Rs1 per share with the result.
On a sequential basis, the company profit declined by a hefty 47% compared to Rs227 million in the fourth quarter (Apr-Jun) of fiscal year 2014-15 due to a decrease in the volumetric sales of trucks which came down by 36% quarter-on-quarter (QoQ).
On the other hand, company showed tremendous growth in the bottom line of 158% year-on-year in the first quarter of fiscal year 2015-16-attributable to lower finance cost which fell by 84%.
The net sales of the company shrunk by 34.1% QoQ in the first quarter of fiscal year 2015-16 to Rs1.14 million compared to Rs1.73 billion in the fourth quarter of fiscal year 2014-15 due to a decline in sales of trucks which fell from 262 units to 168 units.
Ghandhara Nissan has a technical assistance agreement with Nissan, Japan and joint venture agreement with Nissan Diesel Company, Japan for the progressive assembly of passenger cars, light commercial and heavy duty vehicles.
Ghadhara Nissan’s car and truck plants are located at Port Qasim, a busy port outside Karachi city.
Published in The Express Tribune, October 23rd, 2015.