Qudsia Bano

Ghandhara Nissan Limited’s revenue from sales increased 202% to Rs2.9 billion in the first quarter of the ongoing financial year 2022-23 (1QFY23) from Rs969.9 million in the corresponding period of the previous fiscal. However, the gross profit of the company decreased 61% to Rs55 million in 1QFY23 from Rs142 million recorded in 1QFY22. The company also posted a net loss of Rs78 million or a 217% decrease in profit in 1QFY23 against the profit of Rs67 million in the corresponding period of FY22, shows a WealthPK analysis of the firm’s quarterly performance.

Losses during the quarter were primarily caused by a decline in the company's gross profit as a result of volatile exchange rate, rising prices of imported goods and higher operating expenses. The depreciation of Pakistani rupee against the US dollar and the rise in prices of commodities globally also created additional problems.

Performance in 2021-22

During the fiscal year 2021-22, the company’s sales revenue increased to Rs5.3 billion from Rs3.2 billion in the previous year, posting a growth of 66% year-over-year. The gross profit for FY22 stood at Rs412 million, up 19% from Rs346 million in FY21.However, the profit-after-tax for the year went down by 31% to Rs89 million from Rs128 million in FY21.

Due to volatile local and global economic conditions, catastrophic flooding in Pakistan, and other factors, the economic outlook of Pakistan looks bleak. As a result, the export-oriented industries have gotten worse, which is hurting the foreign exchange situation even more. To reduce the current account deficit, the government has tightened import restrictions, which has brought some stability to the Pakistani rupee.

The earnings per share (EPS) of the company in FY22 dropped to Rs1.77 from Rs2.29 in FY21.

About the company

Ghandhara Nissan Limited was incorporated in Pakistan on August 8, 1981 as a private limited company. Subsequently, it was converted into a public limited company on May 24, 1992. The company is a subsidiary of Bibojee Services (Private) Limited (BSL). The principal business of the company is the assembly/progressive manufacturing of vehicles, including JAC trucks, import and sale of Nissan, Dongfeng and Renault vehicles in completely built-up condition, and assembly of other vehicles under the contract agreement.

Credit : Independent News Pakistan-WealthPk