AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi, August 27, 2012 (PPI-OT): Pak Suzuki reports better sales in 1HCY12
Pak Suzuki vowed investors with 57% hike in turnover reporting Rs 36 billion as against Rs23 billion of sales during the corresponding period last year.
According to Standard Capital, the company reported profits after tax of Rs 1.36 billion (EPS: Rs 16.64) as against Rs 278 million (EPS: Rs 3.39) reported in 1HCY11 hence achieved 391% growth in net profit.
Robust sales performance
PSMC sales increased to a huge Rs.36 billion showing 57% y-o-y growth in the wake of exorbitant increase in variants prices of Suzuki Liana and Swift models as well as budget class 800cc cars like Suzuki Mehran and 1000cc car variants such as Khyber and Cultus. High end car prices were revised several times by the company as well as consumption was also increased. In term of high end cars, Suzuki Swift, witnessed around 70% growth in production being 4376 units this year whereas production was 2578 units last year whereas sales growth has been witnessed at a rate of 73%. However, Suzuki Liana performance was not that fascinating as it reported 46% decline in production from 614 units in CY11 to 334 units this year and sales declined by 4%.
While in budget class category, Suzuki Mehran production up by 30%, reportedly 33,839 units this year whereas 25,935 units were produced in the preceding year.
The manufacturing cost also increased by 20% which is line with sales and the factor constituting this increase was the swelling of PKR – JPY parity. The other operating income also hiked by 23%.
Valuation strategy
PSMC yields FY12 PE of 3x whereas PE of INDU yields 5x and wherein Standard Capital recommends BUY since auto assembles usually yield PE multiple of 5x- 6x (if Standard Capital takes aside tractor manufacturers).
| PSMC (Rs.000′) | 1HCY12 | 1HCY11 | Chg. |
| Sales |
36,471,418 |
23,250,706 |
57% |
| COGS |
34,219,430 |
22,427,028 |
53% |
| Gross Profit |
2,251,988 |
823,678 |
173% |
| Dist. Cost |
152,636 |
139,700 |
9% |
| Admin Exp. |
423,288 |
352,864 |
20% |
|
1,676,064 |
331,114 |
406% |
|
| Finance Cost |
6,753 |
9,259 |
-27% |
| Other Op income |
332,264 |
270,981 |
23% |
|
2,001,575 |
592,836 |
238% |
|
| Other Exp. |
138,109 |
46,840 |
195% |
| PBT |
1,863,466 |
545,996 |
241% |
| Tax |
494,129 |
267,107 |
85% |
| PAT |
1,369,337 |
278,889 |
391% |
| EPS |
16.64 |
3.39 |
391% |