Looks like all that idle time of non-production worked out just fine for the automobile giant, Pakistan Suzuki (PSX: PSMC) that despite volumes and revenues befalling miserable days (down 82% and 67% year on year in 2QCY23 respectively), the company delivered an impressive profit of Rs3.2 billion when only last quarter losses for the three months cumulated to nearly Rs13 billion. Last year in June, quarterly profits stood at roughly Rs400 million. What gives?

Apparently, the company had a reversal in its massive finance costs. As it stood, amid all the import and payment restrictions, the company was racking up the bill on its foreign liabilities that had to be repaid but due to ongoing restrictions, the company was unable to make that payment happen. The highest finance costs were exchange losses it was incurring. In 1QCY23, the company’s finance costs had ballooned to 59 percent of the revenue which led to staggering losses.

But it wasn’t just net margins that turned from glaring red to green (9% in 2QCY23), the company’s gross margins also improved to 10 percent, sequentially up from 9 percent last quarter and year on year up from 4 percent. Perhaps at the expense of consumers? Prices have risen roughly 53 percent on average for various locally assembled vehicles since last year. But Suzuki’s volume mix outshone—estimated revenue per unit sold for Suzuki during the quarter increased 81 percent. Granted the units used here only includes car sold and not motorcycles, so the number may be slightly skewed, but for the purpose of this analysis, we have placed it aside (on average, Suzuki motorcycle costs Rs427,000 and during 2Q, company sold around 2,339 units which comes around to 5 percent of the quarter’s topline—a small contribution). By comparison then, costs per unit sold rose 70 percent. The difference strengthened gross margins.

Why is Suzuki inflation prices in a dead market from a demand standpoint? The truth is; it is not. As in, the market is not dead. In fact, despite the price hikes and the hefty cost of auto financing, cars are being sold and they will continue to sell if Suzuki is able to produce at capacity with necessary inputs headed on their way to its plants. Why? One only has to go to “other income”. In 2QCY23, other income is up 10x from last quarter, standing at 17 percent of the before-tax earnings. This means new bookings are rolling in indicating there is still demand out there against all the odds. This further buttressed the bottom-line.

As the market awaits Suzuki’s explanation on its finance costs reversal, two things don’t need explaining. One, there are still buyers out there for Suzuki and actual demand on the ground. Two, Suzuki knows it. With the way automakers have been raising prices, looks like, Fortune does favour the bold.