Pak Suzuki Motor Company (PSMC) sustained massive losses to the tune of Rs10.07 billion in 2023 due to a steep decline in sales and high taxation.

As per the automaker’s financial results for the year ended December 31, 2023, a copy of which was made available to the Pakistan Stock Exchange (PSX) on Monday, the company registered a loss per share of Rs112.35 as compared to LPS of Rs77 witnessed in the same period of the previous year.

PSMC posted net sales revenue of Rs102.11 billion, a nearly 50% decrease compared to Rs202.47 billion last year.

However, despite lower sales, the gross profit of PSMC inched up to Rs17.27 billion 2023, higher than Rs11.68 billion recorded in SPLY. As a result, the company’s profit margin improved to 16.91%, as compared to 5.77% in 2022.

The drop in sales comes as the company remained non-operational through much of the year, due to inventory shortage.

PSMC saw its administrative expenses increase from Rs2.96 billion in 2022 to Rs3.89 billion in 2023, an increase of over 31%.

The company also saw a massive jump in its other expenses, which clocked in at Rs2.12 billion in 2023, as compared to just Rs8.89 million in SPLY.

Despite higher expenses the company managed to post a profit before tax of Rs113.49 million in 2023, as compared to a loss of Rs3.03 billion in 2022.

However, the company paid taxes to the tune of Rs10.1 billion in 2023, which wiped away the entire profit, as compared to Rs3.14 billion paid in taxes SPLY.

Last year in October, PSMC formally announced to voluntary delist from the bourse, citing several factors including Pak Suzuki’s losses, lack of dividends, and cheap valuations at the PSX.

Earlier this year, Suzuki Motor Corporation (SMC), the parent company of Pak Suzuki Motor Company Limited (PSMC), decided to purchase the shares of PSMC at a buy-back price of Rs609 per share, 50% higher than the sponsor’s original offer of Rs406 per share made in December.