Business

KARACHI – Pak Suzuki Motor Company (PSMC) on Monday announced that it will increase the prices of all its cars by 3% with effect from August 1.

This price increase is the first of 2016 that effects every model being sold by the company. Earlier in the year, the company had announced a 2% increase in the price of the Suzuki Wagon R variant, Express Tribune reported.

The company’s share price also increased 3% on Monday, finishing at Rs. 413.5. The benchmark-100 index also went up 0.69% in a bullish day for investors.

Last week, Pak Suzuki announced its second-quarter (Apr-Jun 2016) results and posted a profit of Rs 488 million, down by a massive 67% from Rs 1.47 billion in the same quarter of last year.

Sales fell 7% year on year to Rs 19 billion in the second quarter of 2016 (2Q2016). This decline was mainly due to drop in volumetric sales after completion of the Apna Rozgar Taxi Scheme by the Punjab government.

PSMC’s sales in the outgoing quarter were 26,011 units, a decline of 19% year on year (down 11% year on year to 56,192 units in first half of 2016 (1H2016).

Excluding taxi units (Ravi and Bolan), sales were robust as they increased 23% year on year to 16,911 units in 2Q2016 (17% year on year to 34,864 units in 1H2016).

Any adverse exchange rate movement, implementation of international safety standards, and reduction in import duty are key risks for the company, the report added.