PSMC posts loss of Rs1.58 billion in 2020

KARACHI: Pak Suzuki Motor Company (PSMC) has announced a net loss of Rs1.58 billion for the year ended December 31, 2020 translating into loss per share (LPS) of Rs19.31 compared with the loss of Rs2.92 billion and LPS of Rs35.49 in 2019.

However, in the last quarter of 2020 (Q4CY20), PSMC posted a significant profit after tax of Rs1.009 billion translating into earnings per share (EPS) of Rs12.26 compared to loss of Rs234 million and LPS of Rs2.84 in 4QCY19.

“Recovery in Q4 was mainly on the back of massive surge in gross margins, 70 percent drop in administrative expenses, 451 percent jump in other income and 73 percent reduction in finance costs due to massive deleveraging of its balance sheet,” Ahmed Lakhani at JS Global Capital said.

Net sales of the company dropped 34 percent to Rs77 billion in CY20 due to 47 percent volumetric decline ie 59,052 units sold against 111,543 units in the same period last year. “During Q4CY20, net sales of the company increased 5.0 percent YoY and 18 percent QoQ to settle at Rs27 billion owing to higher prices which helped neutralize the decline in overall sales volumes,” an analyst at Arif Habib Limited said.