Pak Suzuki Motor Company Limited (PSMC) announced its financial results for 2020 where the company posted net loss of PKR 1.589billion as compared to PKR 2.92 billion in last year. Loss per share stood at PKR 19.31 down 46%YoY.
Though Sales revenue registered a 34% decline , the substantial loss in 2020 was primarily driven by a higher finance cost of PKR2.66bn and lower gross margin during first half of the year. Total gross margin stood at 4.2%
As part of cost-cutting measures, the company was able to reduce distribution and administrative expenses by a significant 35% and 29%YoY respectively in 2020. Additionally, the other operating income of the company jumped 187% on back of term deposits increasing.
Pertinent to note is the fact that PSMC’s performance in the Last quarter (October-December 2020) has increased significantly where it posted sales revenue of PKR 26.6bn and net profit of PKR1bn in the quarter alone. The better performance was due to higher sales of Suzuki Cultus and Alto models. Moreover, the Gross margins of the company also increased in last quarter to 8.1% on the back of an increase in car prices.
| Rupees in Million | 2020 | 2019 | Change% |
| Net Sales | 76,720 | 116,548 | -34% |
| Cost of sales | (73,419) | (114,563) | -36% |
| Gross profit | 3,302 | 1,985 | 66% |
| Distribution expenses | (1,640) | (2,539) | -35% |
| Administrative expenses | (1,791) | (2,551) | -30% |
| Other operating income | 704 | 245 | 187% |
| Other operating expenses | (96) | (4) | n.a |
| Operating Profit | 479 | (2,864) | n.a |
| Finance costs | (2,665) | (2,088) | n.a |
| NPBT | (2,186) | (4,952) | n.a |
| Taxation | 596 | 2,031 | n.a |
| Net Profit | (1,589) | (2,920) | -46% |
| EPS (PkR) | (19) | (35) | – |
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