Honda Atlas has reported a profit of 29% with an earnings of Rs 656.9 million in the quarter ended September 30, 2020. The company had reported a profit of Rs 509.7 million in the same quarter of last year, according to a notice sent by the company to the Pakistan Stock Exchange on Wednesday.
The increase in profits comes on the back of a surge in sales coupled with lower finance costs. Earnings per share for the Jul-Sept 2020 quarter came in at Rs 4.6 compared to Rs 3.57 in the same quarter of previous year. Subsequently, the company recovered from the loss of Rs 511 million in first quarter of FY21 to a profit of Rs 657 million in the second quarter of this fiscal year.
Net sales of the company soared 75.4% to Rs 20.4 billion in the quarter under review as opposed to Rs 11.6 billion in the corresponding quarter of previous year. This significant recovery came on the back of increase in unit sales which went up by 67% year-on-year and 219% quarter-on-quarter during Q2, FY21. The increase in sales is attributed towards revival of economic activities due to easing COVID-19 lockdowns as well as low interest rates.