On Monday, in a letter to the Pakistan Stock Exchange, Pak Suzuki declared a loss of 1.53 billion rupees for the first half of 2019 while in the same session last year they had announced a profit of 1.35 billion rupees. The loss per share noted in 2019 so far for Suzuki has been Rs. 18.53 compared to a profit per share of Rs. 15.33 in the first six months of 2018.
Analysts from Top line Securities and JS bank report that Suzuki suffered a 5% drop in its profit margin while also having to deal with the newly introduced advance customs duty of 5% on the import of raw materials. Additionally, Hamid Akram from Topline Securities also states a 56% increase in distribution costs and 74.8% drop in interest revenue due to low deposits in the companies bank balance.
All this is despite a 4.86% growth in revenue stemming from car sales, going from 62.39 billion in H1 2018 to 65.42 billion in H1 of this year. However, it must be noted that despite the increased revenue, Pak Suzuki has posted an 11.26% drop in sales by volume