Pak Suzuki announces first half results

LAHORE: Pak Suzuki Motor Co. Ltd., has announced its 1HCY11 results Thursday. The company has posted a flat earnings. During 1HCY11 the Profit After Tax (PAT) of the company reached PKR278.89m translating into an EPS of PKR3.39 as against PAT of PKR279.35 and EPS of PKR3.39 respectively in the corresponding period last year. In our view, flat after tax earning was mainly because of same growth in both sales and cost of sales.

PMSC sold just 3 percent YoY higher units this year as its volumetric sales of car stood at 41,621 units as against 40,318 units in 1HFY10. Moreover, company showed 7 percent YoY growth in its motorcycle volumetric sales which reached at 10,557 units against same period last year when these were recorded at 9,885 units. Modest growth in volumetric sales led company to show mere 6% YoY growth in its monetary sales to PKR23.25bn as against 21.93bn in 1HCY10.

PSMC showed an equivalent growth in its sales and cost of sales however due to slightly better sales in 1HCY11 gross profit improved by 17 percent YoY to PKR824m as against PKR704m in same period last year.

We would also like to highlight that the company has paid the tax on an effective tax rate of 49 percent in 1HCY11 whereas in same period last year PSMC had realized tax at 46 percent.

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