Pak Suzuki (PSX:PSMC) yesterday announced a whopping annual loss after tax of Rs. 6.33 billion (loss per share Rs. 77) for the year ended 2022. See notice.
The previous year (December 2022), PSMC had earned Rs. 2.67 billion in profit after tax (EPS of Rs. 32.6). This year, the last two quarters were the worst for PSMC, and were responsible for the entire loss.
The major hit this year was on account of exchange loss resulting from exchange controls imposed by the State Bank of Pakistan, as the country faces serious foreign exchange reserves issues.
In another notice , PSMC elaborated on its foreign exchange liabilities and its impact.
The disclosure notice of the PSMC to the PSX stated that, "PSMC had foreign currency liabilities of USD 184 million as of December 2022, that increased to USD 218 million subsequently. Up to December 31, 2022, PSMC incurred an exchange loss of Rs. 3.55 billion. Subsequently, as the exchange rate deteriorated further, PSMC now has an unrealized exchange loss of Rs 9 billion, that may impact the equity of the Company."
See PSMC Price Chart: https://invst.ly/-lb2w
