The profit of Honda Atlas nosedived 82% to Rs 681.8 million for the year ended 31st March 2020 due to a steep decline in sales volume while finance cost remained sharply higher. This translates into loss per share (LPS) of Rs 4.77 according to a company statement shared with Pakistan Stock Exchange (PSX).
Related: Honda Car Prices Increased by Up to Rs 120,000
The company earned Rs 3.851 billion with earnings per share (EPS) of Rs 26.97 in the corresponding period last year. The automaker announced final cash dividend of Re 1 per share for the year ended March 31, 2020. Net sales of the company were recorded at Rs 55 billion, down 42% compared to Rs 95.1 billion in the previous year.
The significant decline in earnings is mainly attributable to declining sales volume as volumetric sales went down by 54% YoY, while substantial increase in finance cost was also witnessed, compared to the previous year. Honda Atlas sold 48,369 units in year 2018-19 whereas it sold only 22,341 units in 2019-20.
Related: Assemblers Shrewd Enough to Increase Prices Ahead of Budget FY20-21
The company recorded finance cost of Rs 727 million as compared to Rs 11 million in MY19. This sizeable increase in the finance cost was due to increased borrowing to fulfill higher working capital requirement on high interest rates.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
