Honda Atlas Cars’ profit dropped 51% to Rs 509.7 million in the quarter ended 30th September 2019 due to reduced sales and a significant decline in other operating income. The company had posted a profit of Rs 1.03 billion in the same quarter of previous year, according to a notice sent to the Pakistan Stock Exchange on Thursday.
Net sales of the company stood at Rs 11.6 billion, down 55% compared to Rs 25.8 billion in the same period of last year. Gross profit showed a decline of 26.2% to Rs 1.2 billion against Rs 1.6 billion in previous year.
Net sales fell due to 67% fall in volumes during the quarter under review. The decline in volumes was led by 68% lower sales of City and Civic combined, while BR-V also portrayed a declining trend with 59% reduction in sales.
Other operating income of the company plunged to Rs 25.1 million during the quarter under review against Rs 360.3 million, down 93% in the same period of previous year. According to an analyst, the decline in operating income stemmed from a low base of short-term investments as advances received from customers had been on a decline due to falling demand.
Full Story: Tribune
A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com