After we reported that Pakistan Suzuki  is gearing up to officially delist from stock exchange, here we bring another update translating what the car maker earned in Q3 2023.

Pakistan Suzuki Motor Company Limited (PSMC) has reported a profit after tax of Rs. 3.8 billion for the quarter ending on September 30, 2023, in contrast to a loss of Rs. 2.48 billion during the same period the previous year.

What PSMC Earned?

According to Topline Securities, the results exceeded expectations due to higher gross margins. Despite a 34 percent decrease in volumetric sales because of increased car prices, revenues for the quarter remained steady year-on-year (YoY). On a quarter-on-quarter basis, revenue increased by 40 percent, accompanied by a 47 percent rise in car volumes.

In the third quarter of 2023, the company’s sales amounted to Rs. 29.9 billion, registering a modest YoY increase of 0.38 percent. Conversely, sales in the nine months ending September 30 plummeted by 48 percent YoY, declining from Rs. 142 billion to Rs. 73 billion.

As a result, the gross margin stood at 14.1 percent for the third quarter of 2023 and 11.4 percent for the nine months ending September 30. With a decrease in bookings, other income saw a YoY decline of 39 percent to Rs. 1.6 billion, compared to Rs. 2.6 billion in the same period of the previous year.

During July-September, other income experienced a 28.5 percent YoY decrease to Rs. 761 million. The finance cost, which had significantly impacted the company’s bottom line over the last nine months (Rs. 9.9 billion), turned positive in the third quarter of 2023.

The company earned a finance income of Rs. 144.5 million during the quarter under review, primarily due to exchange rate gains, as reported by Topline Securities.