KARACHI - Pak Suzuki is scheduled to announce its first quarterly 2010 results on Tuesday (today). The company is expected to post EPS of Rs2.0-2.3, up 79-104 percent versus earning per share of Rs1.1 in first quarter 2009. Though gross margins are expected to remain slightly lower in first quarter 2010 versus first quarter 2009, higher volumetric growth during first quarter 2010 is going to be major earnings driver for the company. According to an analyst Furqan Punjani the volume led earnings should growth to continue for PSMC going forward. EPS expected at Rs2.0-2.3 the expected PSMC to post net earnings of Rs 165-187 million (Earning per Share Rs 2.0-2.3) compared to net profit of Rs 92 million (Earning per Share Rs 1.12), up 79-105 percent. This is primarily due to 127 percent growth in rupee sales of the company. The company sold 18,543 units during first quarter 2010, highest quarterly sales during last 6 quarters. Moreover, the comparison first quarter 2010 sales versus first quarter 2009, volumes are up by stunning 154 percent against only 7,300 units sold in same period last year. Suzuki Mehran stood as the best seller for the company as the company sold 5,241 units against 2,354 units in first quarter 2010 (up 123 percent), which accounted for more than 28 percent of total volumetric sales. It was followed by Suzuki Alto and Suzuki Cultus, the most prominent cars in 1000cc segment. The company is expected to post net revenues of Rs 9.3 billion versus Rs 4.1 billion last year, up 127 percent. On the other hand, despite no surge in average steel prices, gross margin of the company is likely to remain lower at 4 percent, down 60 bps primarily due to 8 percent Pak Rupee devaluation against Japanese Yen. Volume based growth to continue improving macroeconomic indicators and resumption of car financing by few banks will further improve car industry going forward and hence PSMC which enjoys 51 percent market share in overall sales market is Pakistan. Moreover, the new swift model (launched in Dec09) is making its roads to the 1300cc segment in which the company was losing its market share due to lower Liana sales. Expected assembled car sales to reach 142k in current year 2010 with PSMC sharing 72k.