Pak Suzuki Motor (PSMC) reported its 3Q2021 result today, where earnings clocked in at Rs994mn (EPS : Rs12.07) an improvement from loss of Rs547mn (LPS: Rs6.65) in the same period last year.

The significant recovery in earnings is mainly attributable to increase in unit sales by 120% YoY during 3Q2021 due to easing of COVID-19 related lockdown and low interest rates.

Sequentially, the volumes depicted an increase of 75% to 38,431 units. Amongst the models, Alto was largest contributor as company sold 15,681 units up by 105% YoY and managed to increase unit sale by 81% QoQ. Cultus followed suit albeit at a lower quantum with 10,114 units up 210% YoY and 87% QoQ.

Gross Margins of the company remained flattish to clocked in at 5.30%, while down by 0.5 ppts QoQ due to higher raw material prices.

Other Income significantly improved by 199% YoY clocking in at Rs423mn in 3Q2021 due to strong order book.

Finance cost significantly declined by 91% YoY to Rs77mn as compared to Rs886 in 3Q2020 due to lower working capital requirement as volumes picked up.

Distribution and marketing expenses rose by 68% YoY to Rs746mn in 3Q2021, in line with increase in volumetric sales.

Courtesy – AHCML Research