Pak Suzuki 8th Consecutive Quarter with Huge Losses

Pak Suzuki Motor Company is the largest player in the automobile industry in Pakistan and it has announced the financial results for 3rd quarter of the current year 2020. It was reported that the company faced loss of Rs.136.38 million during the quarter and it showed the recovery of 88.30% as compared with same period during last year. Pak Suzuki 8th Consecutive Quarter with Huge Losses.

The car manufacturing firm booked the loss of Rs.1.16 billion in the corresponding quarter of last year, 2019 as the notice was sent to Pakistan Stock Exchange because of downfall of the sales volume. It is the 9th month losses to Rs.2.59 billion, when you compare to loss of Rs.2.68 billion last year with the decrease of 3.40% year on year. it is important to mention that Pak Suzuki Motors has announced its 8th consecutive quarter in facing loss.

Models-----Q3 2020 Jul-Sep-------Q3 2019 July-Sep------Difference
Swift------630---------------------524---------------------20.23%
Cultus-----3,263-------------------3,598-------------------9.31%
Wagon R----2,460-------------------2,168-------------------13.47%
Mehran-----–-----------------------1,249------------------–
Bolan------1,758-------------------1,106-------------------59%
Alto-------7,651-------------------12,943------------------41%
Ravi-------1,723-------------------1,559-------------------10.52%
Total------17,485------------------23,147------------------24.50%

It is reported that the cost of sales came down by 17.13% to Rs.21.43 billion when you compare to Rs.25.86 billion. The gross profit of the company was Rs.1.16 billion compared to gross loss of the company for Rs.232 million as it was recorded in 2019. With the devaluation of PKR, the cost of sales was ped despite of 5.6% year on year and the buildup of the lower cost inventory in the preceding quarters was resulted in .

The loss per share of the company was come down to Rs.1.66 from Rs.14.11 and the share at bourse closed at Rs.206.89 down by Rs.1.32 o r 0.63% with turnover of the 530,800 shares on Tuesday.