Despite Sales Slump, Atlas Honda Earns Rs. 1.408 Billion Profit

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Atlas Honda Limited has declared a profit of Rs. 1.408 billion for the last quarter of 2022. This profit is 3.7% less than the previous year’s last quarter’s Rs. 1.46 billion profit.  

This dip took down the overall profit of the last 9 months as well. In 2022, Atlas Honda had earned a profit of  Rs. 3.68 billion in the last 9 months, which is 5.64 percent less than the previous year, which was Rs. 3.95 billion.

According to the numbers shared by the company, the per-share earnings went down to Rs. 11.35 per share as compared to the previous year’s Rs. 11.80.

The earnings difference was primarily caused by a lower-than-expected effective tax rate. According to Ismail Iqbal Securities, the company has not declared a cash dividend this quarter, despite its strategy of declaring dividends twice a year.

Atlas Honda faced a decrease in sales in the last quarter last year and was hit by a 3 percent fall in sales as compared to the previous year when it sold Rs. 36.26 billion worth of products despite several price hikes during the year. 

Bike sales have been hit as a result of recent production disruptions. Moreover, Honda has announced multiple price hikes in recent months, which has negatively influenced demand. Based on the current economic situation of the country, it appears that more price increases and sales reductions are on the way.

 

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