As per the report, submitted to Pakistan Stock Exchange by Suzuki on April 18, the company faced its highest loss in 16 years. The sales of Suzuki came down from Rs.47.7 billion in the first quarter of the calendar year 2022 to Rs.21.8 billion during the period from January to March in the ongoing calendar year.
The sales came down from 46,379 units in the first quarter of last calendar year to 15,724 units in the first three months of the ongoing calendar year, the year-on-year decrease is 66 percent.
The decreased scale of operation also contributed to 57.19 percent reduction in cost of goods which came down from Rs.46.386 billion last year to Rs.19.856 billion this year.
The company improved its efficiency by decreasing its cost of goods as a percentage of revenue from 97 percent during the period from January to March in previous year to 91 percent during same month in the current year.
This shows the companys gross profit margin (GPM) from 2.83 percent during the first quarter of the previous year to 9.08 percent in the first three months.
However, Suzuki’s operating cost increased by 19.98 percent to Rs.878.4 million during the first three months of the ongoing year compared to Rs.732 million last year. The companys cost of finance went up by 1143.38 percent to Rs.12.82 billion during the first quarter of this year as compared to Rs.1.031 billion during the first three months of the previous year. This increase in cost is very high which affected the overall performance of the company.
To the sources, this big rise in cost of finance is due to the economic condition of the country and State Bank of Pakistans import policy.
The tax expense also increased by 245.68 year-on-year Rs.273.858 million from Rs.187.98 million. Mustafa Mastansir, the Director of Research and Business Development of Taurus Securities commented, What is interesting is that