Atlas Honda Limited, a leading bike manufacturer in Pakistan, has announced its financial results for the half year which ended on September 30th, 2019. The motorcycle maker posted a profit of Rs 1.14 billion, showing a decline in profits by 27.2% as compared to a profit of Rs 1.94 billion last year.
During the half year, the company achieved net sales of Rs. 41.3 billion, a slight increase of 0.4% as compared to last year, despite the slowdown in the economy and reduction in automotive demand.
Honda sold over 526,154 units during the half year as compared to 543,894 sold in the same period last year.
However, the gross profit declined from Rs. 3.8 billion to Rs. 3.0 billion, down by 19.7%. This was due to a decline in sales volume because of the low demand and the devaluation of Pak rupee against USD & Japanese Yen which resulted in multiple price hikes.
However Atlas Honda is still the market leader in the motorcycle segment with a growing lead. The automotive industry is currently going through tough times but for Atlas Honda Bikes, the future still looks bright as it is performing much better than the rest of the industry.
Sales and marketing expenses rose to Rs. 1.0 billion, an increase of 9.2%, which is attributable to promotional activities and an increase in fuel cost.
Administrative expenses rose by 3.8% mainly due to the effects of continued inflation. Other income of the company was up by 24% to Rs. 540 million. The finance costs increased by 25.8% due to a hike in interest rates to just Rs. 13.8 million.
Earnings per Share (EPS) stood at Rs. 11.4 against Rs. 15.7 (restated) for the corresponding period of last year. The company also announced a cash dividend of Rs. 6.5 per share i.e. 65%.
Atlas Honda’s shares at the PSX closed at Rs. 308, down by Rs. 2 or 0.65% with a turnover of 200 shares on Wednesday.