Pak Suzuki Motors Company Ltd. (PSMC) is scheduled to release its 9MCY22 financial result on 26th Oct’22. We expect the company to post a profit after tax (PAT) of PKR 171mn (EPS: PKR 2.07) in 9MCY22 compared to PKR 2,190mn (EPS: PKR 26.62) in 9MCY21.

During 9MCY22, gross margins are projected to settle at 3.6% against 5.7% in SPLY amid higher manufacturing costs. On a quarterly basis, the company’s bottom-line is expected to clock-in at PKR 188mn (EPS: PKR 2.28), down by 81% YoY, which is mainly on account of i) huge decline in gross margins (-213bps YoY) amid lower sales volume (-57% YoY), and ii) a higher cost of raw material prices. Moreover, financial charges are expected to rise by 12x YoY owed to higher interest rates. Furthermore, other income is expected to jump up by 72% YoY given increase in income from cash and cash balances.Courtesy – AHL Research