Honda Atlas Profit Down 41%

Honda Atlas’ profit dropped by a significant 40.7% to Rs 3.9 billion in the quarter ended March 2019, according to a company notice sent to the Pakistan Stock Exchange (PSX).

The company reported earnings of Rs 6.5 billion in the same quarter of the previous year. Earnings per share (EPS) of the company stood at Rs 26.97 in the quarter under review against Rs 45.48 in the corresponding period of 2018.

Related: Pak Suzuki Posts 55% Decline in 9 Month Net Profit

However the company’s sales increased to Rs 95.1 billion in FY2019 compared to Rs 91.5 billion in FY2018. According to brokerage BMA Capital, gross profits dropped 30% to Rs 7.3 billion, while there was a 30% drop in other income due to depleting cash balance in the wake of higher working capital requirements, “That took overall profitability down 41% to Rs 3.9 billion.”

Earlier, Indus Motors and Pak Suzuki have both reported decline in profits despite higher sales volume.

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