Honda Atlas’ profit down by half to PKR 1.050 billion

On Tuesday, 31st July 2018, Honda Atlas posted its profit for the quarter that ended in June 2018, and according to the data shared by the company with Pakistan Stock Exchange, the profits of the company declined by 50% as compared to the same period of the corresponding year.

Honda’s made PKR 1.050 billion profit in the last quarter whereas, in the same period of the previous year, it made PKR 2.086 billion. It is to be noted here that despite an overall decrease in the profits, the sales revenue in the last quarter rose by 13% with total 10,736 units sold, as the company hiked the prices of the car for three times, this year.

Moreover, Honda Pakistan also revealed, in the notice sent to the PSX, that there is a 13% increase in sales volume which was led by Civic and City car models with 21% growth. Earnings per share (EPS) in the quarter April-June was PKR 7.4, while the EPS in the same time period of the previous year was PKR 14.6.

Read Also: Import of cars increased by 6% in the Financial year 2018

The overall decline in the gross margin is due to the devaluation of the rupee against the dollar and the higher cost of raw material. Additionally, the other reason the profits nosedived, is the tax rate of 44% as super-tax was booked during the quarter.

Moreover, Pak Suzuki has also posted its profit for the last quarter and its net profit is down by a massive 43% to PKR 394 million.

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My name is M. Ali Laghari and I love to read and write about Cars.

Notable Replies

  1. aspen says:

    Very good. Timebto end big 3 monopoly n introduce some new companies wohld further decrease their profit n akkar

  2. aa78 says:

    Good to read! Their price gouging tactics should hopefully cause further reduction in their profits.

    It's hilarious how they try to hide their unit sales and try to compete with Toyota's Corolla variants unit sales by combining total sold units of two different cars (City and Civic). Shameful and reprehensible.

  3. jin k paas share thay wo to doob gye saal dividend nai khairat aani h honda ki traf se.. :smile: bech do share jaldi jaldi iss se pehle janaza hi nikal jae company ka

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