What a difference a year can make. In the case of Pakistan Suzuki Motor Company (PSMC), the past few months have spelt trouble in different forms, due to a number of changes in the domestic market.
The introduction of Euro-II standards mandated the discontinuation of production of its Alto brand. In the first half of the previous year, sales of Bolan and other small cars had received a boost due to the Yellow Cab Taxi Scheme in Punjab. However, in recent months, that sales driver has also been wrapped up.
Moreover, it appears that the unabated import of used cars has also dented the demand for PSMC in the outgoing quarter. Consequently, the company’s top line shriveled by 27 percent, compared to the same period last year.
As shown in the table, sales have fallen across almost all categories during this period; not just for Alto and Bolan.
On the bright side, the company’s cost of sales, distribution costs and other expenses were largely under wraps. The impact of the top line was felt on the bottom line; which shrank by 39 percent over the same period.
PSMC is on the verge of rolling out the new 1,000CC Alto. That model was initially launched in the country back in 2000 and received a roaring response from the market. Based on that experience, the company is likely to enjoy a positive reversal of fortunes as soon as the new model is launched here.
=====================================================
PAK SUZUKI MOTOR COMPANY
=====================================================
Rs (mn) 1QCY13 1QCY12 chg
=====================================================
Sales 13,605 18,765 -27%
Cost of sales 12,960 17,786 -27%
Gross Profit 645 978 -34%
Other operating income 129 127 2%
PAT 362 589 -39%
EPS (Rs) 4.40 7.15 -38%
-----------------------------------------------------
Source: KSE notice
=====================================================
=====================================================
PAK SUZUKI MOTOR COMPANY
=====================================================
Brand 1QCY13 1QCY12 chg
=====================================================
Mehran 8,756 8,569 2%
Bolan 4,123 6,300 -35%
Alto 0 5,039 -100%
Liana 28 175 -84%
Cultus 3,665 3,564 3%
Swift 1,546 1,954 -21%
Ravi 2,988 5,041 -41%
Cumulative 21,106 30,642 -31%
-----------------------------------------------------
Source: PAMA
=====================================================
Comments
Comments are closed for this article.