KARACHI: Honda Atlas Cars Pakistan’s profit dropped by a significant 40.7% to Rs3.9 billion in the quarter ended March 31, 2019, according to a company notice sent to the Pakistan Stock Exchange (PSX).
The company reported earnings of Rs6.5 billion in the same quarter of the previous year. Earnings per share (EPS) of the company stood at Rs26.97 in the quarter under review against Rs45.48 in the corresponding period of 2018.
JS Research analyst Ahmed Lakhani said the result was in line with market expectations.
“Sales and volumes of the company were in line with expectations; however, gross profit margins of the company were better than expectations,” he said.
“We cannot generalise this improvement for coming months, as we have yet to see how it performs in coming quarters,” Lakhani remarked.
The margins were supported by other income of the Japanese automaker and fewer taxes it paid in the quarter compared with the same quarter of the previous year.
The company reported sales of Rs95 billion in the under-review quarter against Rs91.5 billion in the corresponding period of 2018. The cost of sales increased to Rs87.8 billion from Rs81.1 billion, while the gross profit stood at Rs7.3 billion against Rs10.5 billion.
Additionally, Honda Atlas bore a massive hit in sales, which plummeted 38% from 4,603 units in April 2018 to 2,836 units in April 2019, according to latest data released by the Pakistan Automotive Manufacturers Association (PAMA). Meanwhile, Indus Motor Company saw 7% decrease in sales, while the sales of Pak Suzuki Motor Company plunged 27%.
The company recorded taxation at Rs1.7 billion in the quarter of 2019 against Rs3 billion in the same quarter of 2018. Furthermore, the company’s stock price at the PSX closed at Rs390, up Rs3, with 2,400 shares turnover. The KSE-100 index closed at 33,250.54 points, up 83.92 points on Monday.
Published in The Express Tribune, May 21st, 2019.