Earnings per share jump to Rs13 from Rs10.6. STOCK IMAGE
KARACHI: Atlas Honda, Pakistan’s largest motorcycle manufacturer with a market share of over 50%, has posted a profit of Rs1.34 billion in the first half ended September 30, 2015, up 22% from Rs1.10 billion in the same period of last year.
Earnings per share jumped to Rs13 from Rs10.6 in the corresponding period of previous year.
Similarly, in the second quarter (Jul-Sept 2015), the company earned a profit of Rs645 million compared to Rs529 million in the same quarter of previous year, up 22%.
There are many Chinese motorcycle assemblers but none has proved to be a serious contender to challenge the dominance of Atlas Honda. But now the situation is changing.
In April this year, Yamaha - one of the largest motorcycle makers in the world - resumed assembling motorcycles in Pakistan with an aim to produce up to 400,000 units annually by 2020.
Yamaha Motor Pakistan, a newly formed company with 100% equity held by Yamaha Motor Company, Japan, said it wanted to produce 30,000 units in 2015.
Atlas Honda sold 620,329 units in the fiscal year ended March 2015, down 3% from 640,148 units sold in fiscal year 2014, according to the company’s annual report.
Despite the drop in unit sales, the company continues to increase its annual net income as it earned a net profit of Rs2.35 billion in fiscal year 2015, up 17.5% from Rs2 billion in 2014.
Published in The Express Tribune, October 31st, 2015.
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