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).
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.
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.