We had earlier discussed that the sales of motorbikes have decreased 6 percent in Pakistan during the first nine months of the Fiscal Year 2019. It has now been revealed that the country’s market leader in motorcycles industry, Atlas Honda Ltd, has suffered a decline in profits.
According to recent financial results, the profit after tax (PAT) of Atlas Honda went down during the current Fiscal Year. The company’s PAT stood at Rs3.21 billion at the end of March 31, 2019. It was Rs4.66 billion during the same period of the previous year.
This means that the company recorded a 31 percent dip in profits during the Fiscal Year 2018-19. The maker of Honda CD-70, however, earned 7% growth in net sales. The net sales increased from Rs 77.47 billion to Rs 82.41 billion. Atlas Honda reportedly sold 1,135,869 units as compared to 1,087,105 units during the previous year.
On the other hand, as per statistics compiled by Pakistan Automotive Manufacturers Association (PAMA), the motorbike sales went down 6% decrease in 9MFY19. There was a 5% decline in sales of Atlas Honda motorcycles in March 2019 as compared to February 2019 and 17% decline with respect to March 2018.
Rupee depreciation and end of production of Mehran hatchbacks have been two key defining events for Pak Suzuki Motor Company (PSMC) during the first quarter of this Fiscal Year which begin on January 1 and ended on March 31. As a result, Pak Suzuki has suffered Rs980 million net loss. It is interesting to note that the company was in profit mode during the first quarter of the previous year as it secured Rs904 million net profit.
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