Pak Suzuki Reports Staggering 10b Loss for CY23

Pak Suzuki Motor Company Limited (PSMC) has disclosed its financial performance for the year ending December 31st, 2023 (CY23), revealing a significant loss after tax (LAT) amounting to Rs. 10 billion.

This marks a staggering 50 percent increase from the loss of Rs. 6.3 billion reported in the corresponding period last year.

The company’s net sales plummeted by 50 percent year-on-year (YoY), reaching Rs. 102 billion compared to Rs. 202 billion in the previous year.

Consequently, Pak Suzuki posted a loss per share of Rs. 122.35, a notable increase from Rs. 77 per share reported in the prior year.

Despite the challenging financial landscape, there were some positive indicators for PSMC.

The gross profit witnessed a 48 percent YoY increase, rising from Rs. 11.68 billion to Rs. 17.27 billion, with gross margins standing at 17 percent, higher than the previous year.

However, other income during CY23 experienced a decline of 33.4 percent, reaching Rs. 2.1 billion compared to Rs. 3.2 billion in the prior year.

In light of these financial results, PSMC announced its decision to initiate a share purchase offer (SPA) in February 2024, aiming to sell 22.14 million shares of the company at Rs. 609 per share.

This move signifies the company’s intention to delist from the Pakistan Stock Exchange.

The decision to delist comes following Suzuki Motor Corporation, Japan’s majority shareholder of PSMC, opting to purchase all shares of the company held by entities other than the Sponsor/Majority Shareholder.

On Monday, PSMC’s scrip at the bourse closed at Rs. 17.02, marking an increase of Rs. 0.83 or 5.13 percent, with a turnover of 33.7 million shares.

Despite the challenges faced, PSMC remains committed to its strategic decisions and looks toward a transformative future in the automotive sector.