Honda Atlas Cars (Pakistan) Ltd, one of the leading auto assemblers in the country reported a 90% drop in its full-year net profit, owing to an increase in expenses.
In a statement shared with the Pakistan Stock Exchange (PSX), the company reported a net profit of Rs 260.141 million for the year that ended 31 March 2023, down from Rs 2.509 billion in the previous year. For the specified period, the company skipped all payouts. Earnings per share came in at Rs 1.82/share, compared with Rs 17.58/share last year.
Honda said its revenue for the year dropped to Rs 95.087 billion, compared with Rs 108.047 billion a year earlier. Its cost of sales remained at Rs 87.926 billion from Rs 102.515 billion during the same period last year.
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The other income for the period rose to Rs 2.321 billion, compared with Rs 2.004 billion the previous year. Other expenses rose to Rs 4.929 billion from Rs 984.045 million, which affected the profit margins. The significant decline in profit was attributed by analysts to lower volumetric sales and higher finance costs, which were recorded up by 6.5x on a year-on-year basis.
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