The Board of Directors of
The company's sales during the said period decreased 48.49pc, from
Akram added that the loss during the quarter came in higher than industry expectations mainly due to higher finance cost. The analyst said that the gross margins for the quarter clocked in at 3.23pc vs. 3.25pc in the same period last year. He stated that during the start of the quarter, PSMC increased prices of all its variants in the range of 4-7pc which helped the company to maintain its gross margin, considering higher fixed cost/unit due to lockdown in the last eight days of March this year.
Akram shared that for the outgoing quarter, total unit sales were down by 63pc YoY and 37pc QoQ. He opined that the decline in sales was mainly due to higher car prices and interest rates for car financing. 'In 1Q2020, finance cost increased by 3.23x YoY due to the company's higher working capital requirements amidst higher inventory levels as sales remain slow,' the analyst said. Akram stated that the company booked a net tax benefit of
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