Honda Atlas earns profit despite multiple price hikes

Despite multiple price bumps throughout FY2018, Honda Atlas Cars (Pakistan) Limited has posted an increase in sales as well as the company’s yearly earnings.

Honda Atlas Pakistan has posted its earnings at PKR 6.49bn at the end of March 2018. Honda Pakistan’s profits are up by 6pc compared to the previous year of the same time period on YoY basis. Honda recorded PKR 6.14bn of sales in the financial year 2017 ending in March 2017.

Also Read: Atlas Honda to increase its production up to 1.5 million units per year

By the end of the quarter that ended in March, net sales jumped by +22%YoY to PKR 25.8bn. This helped in the increase of net sales by +46%YoY to PKR 91.5bn. Honda was able to attain peak sales of approximately 50k units. Both the Honda City and Honda BR-V have helped Honda Pakistan achieve overall improved sales targets on the year-on-year basis at the end of fourth quarter of the fiscal year 2018.

The selling and distribution costs have doubled from PKR 0.21bn in the previous fiscal year (FY17) to PKR 0.42bn in FY2018.

However, for the quarter ending on March 31 alone, earnings were down by +35%YoY to PKR 1.37bn as against PKR 2.12bn in the corresponding period last year. Honda sold 12,453 units of Civic and City in this quarter.

Along with the earning details, Honda Pakistan also announced the cash dividend of PKR 22.8/share for the full year.

Moreover, Pak Suzuki has also posted its profits for the quarter that ended on March 31, 2018, and by looking at the figures it is not great at all. It attained the profit PKR 904.14 million in the said period. There is a 31 percent decrease in profits.

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Notable Replies

  1. The bold statements are opposing each other as major price hikes were in the quarter starting in January and ending on March. Random price bumps have deterred sale with -35% (as per article).

    Isn't quarter ending on March considered as 3rd quarter in the Financial Year?

  2. aref says:

    You are right. It should be Q3. I picked the figures from IGI Securities report and it said Q4.

  3. No Honda Atlas year of reporting has always been April to March. For them Apr-Jun is Q1 and Jan-Mar is Q4.

  4. Further, though their sales numbers are usually reliable, don't read too much in profit numbers given by Honda Atlas. I have been following their financial performance since many years and they have a habit of throwing in major surprises (mostly negative) related to their earnings & dividends, even when the whole market expects them to announce strong results. Masters of earning concealment and tax evasion.

  5. It makes sense then. Thanks

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