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Pak Suzuki Motor Company Limited (PSMC) registered its highest-ever quarterly loss of Rs12.9 billion in the first three months of 2023 owing to decrease in sales and high finance cost.
The car manufacturing firm had booked a loss of Rs460.227 million in the same period last year.
The government’s decision to limit imports and the issuance of Letters of Credit (LC) has had a significant negative impact on the country’s auto industry, which is heavily dependent on imports. Higher loan costs and a sharp increase in car prices have also decreased customer demand.
It should be noted that the Pakistani rupee has depreciated by over 20% against the US dollar during this time, while inflation averaged at over 31% during the same period.
According to a notice sent to Pakistan Stock Exchange (PSX), PSMC’s most recent financial statements for Q1 2023 (Jan.-March) show that the automaker reported a loss after taxes of Rs12.915 billion.
The amount of money PSMC made during that time was Rs21.839 billion, which is a 54% decrease from the Rs47.736 billion made during the same period last year. Additionally, revenue fell by 64% on a quarterly basis (QoQ), with unit sales of the company falling by 74% YoY and 70% QoQ.