KARACHI: Pak Suzuki Motor Company has posted a net profit of Rs5.8 billion or earnings per share (EPS) of Rs70.9 in the year ending on December 2015, up 207% compared to Rs1.9 billion or an EPS of Rs23.4 in the same period of last year.
According to a company notice sent to the Pakistan Stock Exchange (PSX), in the fourth quarter (Oct-Dec) of 2015 alone, the company posted a profit of Rs1.8 billion or an EPS of Rs21.7, up by a massive 479% from Rs311 million or an EPS of Rs3.8 in the same quarter last year. The result was also accompanied by a final cash dividend of Rs15 per share.
The KSE-100 Index closed at 32,623, down 115 points on Tuesday, while the share price of Pak Suzuki ended at Rs431.33, down 3%. “The result was below market consensus,” Topline Securities commented in its report.
During 2015, revenues of the company improved substantially by 58% year-on-year (YoY) while gross margins improved by 579 basis points (bps) to 13.6% from 7.8% during 2014. The company sold 133,660 units in 2015, up 72% YoY.
Revenue grew by 86% year-on-year to amount to Rs23.5 billion in the fourth quarter of fiscal year 2015-16 (4Q2015) as company sold 36,712 units in the fourth quarter (+97% YoY).
“We attribute this increase in volume to the Punjab taxi scheme launched in provincial budget of fiscal year 2015,” the report said. To recall, PSMC offered a discount to the Punjab government after it placed a huge order.
Gross profit improved substantially to Rs3.2 billion (+271% YoY) in 4Q2015 while gross margins rose by 677 bps to 13.6% year on year. This happened due to 22% YoY fall in international steel prices during the fourth quarter of 2015 and favourable exchange rate movement as the dollar and rupee appreciated against Japanese yen by 5.3% YoY and 2.4% YoY, respectively.
