Home Mercedes SL 300 Indus Motors and Pak Suzuki Declare Losses

Indus Motors and Pak Suzuki Declare Losses

Indus Motors and Pak Suzuki Declare Losses


In the ever-changing landscape of the automobile industry, two giants, Indus Motor Company Limited (INDU) and Pak Suzuki Motor Company Limited (PSMC), have been navigating some financial challenges in the form of losses on the road. The companies’ board of directors (BoD) recently met to discuss their financial results.

Losses By Indus Motors

Indus Motors’ (INDU) recent financial results have been like a roller coaster ride, with earnings taking a dip. The company’s earnings per share (EPS) for the financial year are expected to plummet by a significant 53%. The reasons behind this ride have been discussed throughout the past year. The auto sector faced a rough patch due to:

Inflation Impact: Rising inflation hit the auto sector, affecting affordability and demand.

High Interest Rates: Elevated interest rates discouraged potential buyers from making purchases.

Consumer Caution: Consumers adopted a more careful spending approach, impacting auto sales.

In the last quarter, INDU faced a hurdle as well. They sold fewer cars, a total of 5,513 units. This change in pace caused their revenue to drop by 18%, coming to around PKR 39.6 billion. It’s like having a slow drive when you’re used to zooming ahead. But that’s not all – there were additional expenses like the super tax, which also contributed to the dip in profits. Despite these twists and turns, INDU is planning to offer a cash dividend of PKR 12.0 per share. It’s like sharing a small treat after a challenging journey.

Pak Suzuki Decrease In Loss

On the other side of the road, we have Pak Suzuki Motor Company Limited (PSMC). This journey has been a bit different. In the last quarter, PSMC faced a major loss. But guess what? This time, the loss is expected to shrink. In the last quarter, they sold only 7,441 cars, which is not a high number. This affected their revenue, causing it to drop by 17%. However, the price hikes from the previous quarter balanced things out a bit. The gross margin is expected to be around 6.4%, which shows that PSMC is taking strides toward improvement.

These two giants are facing challenges and losses in their own unique ways. INDU is working to tackle the impact of various factors on their earnings, while PSMC is making progress in recovering from a significant loss. Despite the challenges, both companies are determined to keep moving forward, adapting to the changing terrain of the automobile industry. It’s like they’re in a race against time, working to overcome the hurdles and reach the finish line.



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