Pakistan Suzuki Motor Company Ltd posted 73 percent fall in half year net profits on Monday as the firms top line shrank significantly owing to slowdown in the economy. The firm said it earned Rs 161 million for the six-month ending June 2009, compared with Rs 598 earned in the same period last year.
PSMCs sales turnover decreased to Rs 9.7 billion from Rs 25 billion last year, despite companys effort to reduce price to attract consumers. The 61 percent drop comes mainly due to 75 percent decline in car sales volume on account of low demand.
Meanwhile, motorcycles sales were also weak - down 62 percent to 7,066 units during the period from 18758 units in the year ago period. The pressure from top line was also felt in margins which squeezed to 3.4 percent from 3.9 percent in the same period last year.
As a result gross profit decreased to Rs 338 million from Rs 989 million, as assemblers faced high input cost due to lower production volume and 37 percent decline in rupees value against the Yen between January and June. However, on a positive note, the automakers financial charges decreased from Rs 56.9 million to Rs 4.76 million, partly due to better working capital management and partly due to decrease in interest charges.
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