Pak Suzuki Motor Company had a loss of Rs 2.46 billion in the period January to June 2020 due to increased operations and gross losses as the demand for cars remained low.
According to a company announcement released on the Pakistan Stock Exchange on Wednesday, the company reported losses of $ 1.52 billion. Rs in the same period last year.
The company reported Rs 29.92 per. Share loss for the period compared to Rs 18.53 in the same period last year.
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“Gross margin decreased negatively to 6.29%, down 729 basis points year on year and 952 basis points quarter on quarter compared to 1% in Q2 19 and 3.23% in Q1 20. The decrease is due can be attributed to currency devaluations and higher fixed costs per Unit, ”says a report from AHL Research.
The company's net sales decreased by 58% during the period to Rs 27.5 billion. This is due to declining sales, the effects of the Covid-19 outbreak and low demand due to high financing costs.
“Demand for new cars remained low during the first half of 2020, given high car prices and the negative impact of Covid-19 on consumer purchases,” said Hammad Akram, an analyst at Topline Securities.
The company's other revenues increased by a remarkable 98% to Rs 194 million in the first half of 2020, compared to Rs 98 million the previous year.
Meanwhile, the company's financing costs increased 175% to Rs 1.9 billion. This is due to more loans to meet working capital needs.
