The profit of Pak Suzuki has been on the whole plunged by 91% to PKR 95 million as it has been reported by the company. As on the basis of the report details, the company has been on the scale of earning around a profit of PKR 95 million in the quarter that ended on 30th September 2018 that is to be down by 91%. Plus whereas in the same quarter of the corresponding year it made a profit of around the range of PKR 1.10 billion.
What are the main reasons of Pak Suzuki profit drop?
The main reasons that are being come all around into the huge plunge are rupee devaluation against the Dollar, all along with the higher taxes imposed by the government and ban on non-filers from purchasing a vehicle higher than 200cc engine capacity. The volumetric sales by the side of the company also dropped by 10% as compared to the previous year’s quarter that has all ended in September. Plus the net sales have been all improved by the range of 3% due to bumping in the price hike by the company. The Earnings as per share plummeted by PKR 1.15 in the recent quarter against the cost of around PKR 13.43 in the same period of the previous year. It is much important as to mention here that the company in March 2019 that will discontinue its best selling car Mehran and hence also replace it with the all-new 660cc Suzuki Alto. All the local cars and also the bike makers have somehow all surged the prices of their vehicles amid rupee depreciation, and Pak Suzuki and Al-Haj FAW will also be coming about in terms of increasing the rates of its vehicles in the coming days.
Pak Suzuki Motor Company is namely known as one of three Japanese car-makers in Pakistan. It is much surprising as they announced a 12-fold plunge in profit which came down to Rs95 million in the quarter ended September 30, 2018. Plus the setting of the volumetric sales of the company that has been dropped 10% in the Jul-Sept 2018 quarter that is all compared to the same quarter of last year. It has on the whole manage as to achieve 3% higher sales revenue in terms of the rupee terms in the quarter. There has been also the additional 8% depreciation in the value of the rupee as which occurred in the current month. The rate of the rupee has shed 27% of its value since December 2017. It is all somehow standing at Rs133.91 to the US dollar in the inter-bank market just as according to the State Bank of Pakistan.
It would not be wrong to say that the inflation rate has been getting much high in Pakistan. Now let’s see that the profit drop rate by Suzuki will be bringing any kind of effect on the inflation rate later on or not.
