Earnings Report /
Pakistan

Pakistan Suzuki: 2Q21 review – lower gross margins and other income lead to earnings miss

  • PSMC posted an EPS of PKR5.08, lower than our expected EPS of PKR8.74, due to lower-than-expected GMs and other income

  • GMs declined to c.5.8% (vs 6.1% in 1Q), lower than our estimated GM of c.6.2%, amid c.20% qoq decline in volumes

  • Despite the weaker result, we maintain our Buy stance (December 2021 TP of PKR450/sh) amid strong order flows

Abdul Ghani Mianoor
Intermarket Securities
31 August 2021