Honda Atlas has suffered from a 74% decline in profits to Rs 710.2 million in 9 months ended December 31, 2019 on the back of a massive drop in volumetric sales. The company had recorded earnings of Rs 2.68 billion in the same period of previous year, according to a notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share stood at Rs 4.97 in Apr-Dec 2019 compared to Rs 18.78 in the previous year, whereas sales of the company dipped 44.5% to Rs 39.4 billion in the period under review compared to Rs 70.96 billion in the previous year. Earnings in the third quarter turned in a loss as Honda Atlas reported a loss of Rs 41.3 million in Oct-Dec 2019 compared to a profit of Rs 601.6 million in the previous year.
Reportedly the decline in margins came amid rupee depreciation, increase in duties on imported raw material and higher fixed cost per unit on the back of lower utilization of its plant. The company has been observing several non production days a month since the last 6 months already.