KARACHI: Honda Atlas Cars Limited on Tuesday announced that its net earnings rose 6% to Rs6.5 billion in the financial year ended March 31, 2018, but the nominal rise in profit did not reflect a hefty 46% increase in revenues of the company.
Earnings per share stood at Rs45.48 for FY18. Last year, its after-tax profit was Rs6.1 billion. The carmaker also announced a cash payout of Rs18.57 per share, taking total payout for the year to Rs22.75.
Revenues of the company grew from Rs62.8 billion to Rs91.5 billion, thanks to the introduction of new BR-V variant. Price tags of different cars also jumped during the year following around 9% depreciation of the rupee against the US dollar.
Honda sold 14,800 more units during the year compared to the preceding year, recording an increase of 42%.
However, gross profit margins fell 3.11 percentage points in the wake of 30% increase in steel prices and 9% decrease in rupee’s value against Thai baht. Pakistan’s automobile industry mainly imports completely knocked down (CKD) units from Thailand.
In the fourth quarter ended March 31, Honda’s profit dropped 3% quarter-on-quarter despite an 18% increase in sales compared to the same period of previous year.
The stock price of Honda Atlas Cars fell Rs6.30 and closed at Rs434.02 at the Pakistan Stock Exchange.
Published in The Express Tribune, May 16th, 2018.