Honda profit up by 145% over last year’s loss
KARACHI: Honda Atlas Cars (HCAR) reported increasing profit after tax (PAT) to Rs 244 million, depicting exponential growth of 145.9 percent over the last year loss of Rs 532 million, as per financial results for the year ended March 31, 2013 announced on Tuesday.
The figure of 4.8 percent as gross profit margin is the main cause for these favourable results. HCAR reported financial year 2012-13 earnings per share (EPS) of Rs 1.71 per share as against of Rs 3.73 per share loss in 2011-12.
HCAR reported a full year cash dividend of 3 percent (Re 0.30), which is quite favourable and as per expectations, said analysts. Launch of new model of City and Accord in this fiscal year gained the attention of high end car buyers and company enjoyed sales of Rs 30 billion this year which is somehow double the sale of last year of Rs 16 billion in the term of revenue, said Rajesh Kumar Maheshwari an analyst at Standard Securities Limited.
Likewise the sale of Honda City increased by 105 percent and sale of Honda Civic increased by 73 percent in term of quantity this year against last year.
The Company experienced lower manufacturing cost, as Japanese yen has depreciated against US dollar in this year, because major cost of manufacturing is imports of spare parts from Japan which can purchase at relatively low price in Pakistani currency as compare to last year cost of sales due to which Company managed to report gross profit of Rs 1447 million (4.8 percent of sales). General election had also impacted positive on sales of HCAR as heavy buying of brand new cars by the political leaders and candidates witnessed during the election campaign and preparation of general election.
HCAR’s portfolio carries high price luxury cars, which gained the attention of these buyers and resulted in increase in sales during the first three months of 2013. Rajesh said a positive future for HCAR was ahead, as Company’s sales in month of April was also favourable and it sold 1,800 locally assembled units of City and Civic.
Sales of high end cars will continue to increase in upcoming days and HCAR will report favourable earnings in
first quarter in the fiscal year 2013-14. staff report