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.
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.
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