Honda Atlas is one of the Big 3 car manufacturers in Pakistan. However, the company is the weakest of all three. The car brand has only two primary bread earners, Honda Civic and Honda City, and has way less sales than Suzuki and Toyota every month. That is why, we are stunned to see the company’s profit figures for the fiscal year 2021, and you will be too.
Honda Atlas has sent a notice to the Pakistan Stock Exchange announcing a profit of Rs. 1.79 billion during the FY2021, ended in March. Compared to the Rs. 681 million profit of the previous year, there is a growth of 163%.
Earning Per Share
The company’s earnings per share jumped to Rs. 12.56 from Rs. 4.77 in the previous year. Similarly, the final cash dividend jumped to Rs. 4.52 (45.2%) per share from Rs. 1 (10%) per share in the last year.
Other income went up by 43.8% to Rs. 918.5 million from Rs. 638.6 million in the year ended March 2020 due to the increase in the new car bookings.
Sales Increase
Honda’s sales for the fiscal year 2021 increased by 22.4%, amounting to Rs. 67.36 billion. The year before that, the total sales came to Rs. 55.04 billion. There are two main reasons for this massive sales growth: higher car prices and low car finance rates.
163% increase in profit and 22.4% increase in sales show that the public is sticking to Honda cars. It is mind-blowing because we hear Pakistanis complaining about the high prices and low technology of Big 3 cars all the time. Then we see the companies’ quarterly and yearly sales and profits and can’t help but wonder what is going on in the market? If we are all still buying these cars, why are we crying about it? If we are crying about it, why are we still buying?
