Tuesday, April 23, 2024

Honda Shifts from Loss to Profit

Atlas Cars of Honda in Pakistan has recently reported a great profit of over RS 751.8 million as in the third quarter of the previously ended month like on 31st, December, 2020 that all against a huge loss of about RS 41.3 million during the same period.

According to the reports the profit in this wake of the restoration of these Honda vehicles demand just coupled with the attractive auto-financing rates. However, as per the notice that was sent on Wednesday to Pakistan Stock Exchange, the earnings of the auto assemblers per share came at RS 5.26 just during the months from October to December of 2020, the quarter against the loss per share of about RS 0.29 in same time of the last year.

Mustajab Ali Kazmi, the Taurus Securities analyst also said that Honda Atlas has recorded 14 percent quarter-on-quarter growth in the profit as primarily due to an increase of 5.2 times in the other incomes that was along with the lower distribution as well as the administration cost.

The sales of Honda during the months from October to December amounted as RS 17.6 billion that was about 78.9 percent higher than the amount RS 9.9 billion during the in the same quarter of the year, 2019.

However, he also said that this topline fell by 14% on the basis of quarter-on-quarter mainly just because the company sold 6,231 total units in this period under a review against the 7,435 units like during the quarter from July to September in 2020.

As per the analyst statement the entry of the new players and the new car models during this time in the market had impacted the sales of Honda. Meanwhile, the sales volume has grown to 69% as of year-on-year and that is translated just into 79% hike as in sales revenue.

Kazmi also said that Honda has recorded a profit of about RS 897.7 million just for this nine-month period that ended on 31st, December, 2020, and it was about 26% higher as compared to the same months of the previous year. .

He further pointed out that the entire industry of automobile had faced a severe supply issues like during this quarter as under a review arising just from the congestion of the ports due to pandemic of Covid-19 in Far East regions. 

Mehjabeen Qasim
Mehjabeen Qasimhttps://startuppakistan.com.pk/
Business Journalist at Startup Pakistan

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