As of March 31, the calendar year 2022, Pak Suzuki Motor Company Limited (PSMC) lost money after taxes for the quarter ending on March 31, CY 2022, the company said.
During the same time last year, the car company made a profit of Rs. 778 million.
According to the automaker’s financial results, the company lost money because of a rise in economic costs, a sharp drop in other income, and a rise in production price.
However, the company’s net sales rose by 32% year-over-year to Rs. 47.736 billion in the first quarter of this year from Rs. 36.098 billion in the same period last year because car prices increased and more cars were sold.
The loss came as a surprise because of higher-than-expected finance costs and lower-than-expected other income, even though gross margins were flat for the quarter.
There was a 3.29 percent drop in gross margin for the company over the last year to 2.83 percent, which is the same as last year. The decline was caused by higher costs (especially freight costs and steel prices) and the dollar’s value going down.
During the same time last year, gross profits dropped by 39% to Rs. 1.349 billion from Rs. 2.209 billion. Because the company made less money from cash and cash balances, its other income dropped 15% to Rs. 527 million from Rs. 619 million.
During the quarter, the company’s financing costs rose by 312 percent from last year to Rs. 1.031 billion million. This is mostly due to more late payments, more advances from customers, and a drop in the value of the rupee.
During this time last year, the company earned Rs. 9.45 for each share. This year, the company made a loss of Rs. 5.59 per share.
PSMC’s stock closed at Rs. 200.49, down Rs. 12.21, or 5.74 percent, on Tuesday. There were 152,043 shares traded on the bourse at that time.