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.
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