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Honda Reports a Huge Loss of Rs. 385.28 Million in Q2 FY 2023

Honda Atlas Cars Pakistan Ltd. (HCAR) has announced its financial results for the second quarter that ended September 30, 2022.

In a notification to the Pakistan Stock Exchange, the company reported a loss of Rs. 385.28 million during the second quarter, compared to the same period of the previous financial year when it reported a profit after tax of Rs. 939.20 million.

The deviation has mainly come from higher than estimated effective tax rate.

During the first six months of the ongoing financial year, the profits of the company dropped by 85.43 percent to Rs. 0.272 billion compared to Rs. 1.867 billion during the same period of the previous financial year.

In July-September this year, sales decreased by 24.74 percent to Rs. 19.54 billion as compared to Rs. 25.97 billion recorded in the same period last year, as a result of a 40 percent/39 percent Quarter on Quarter/Year on Year decline in car sales volumes, amid curb on imports by SBP and lower auto-financing, according to a report by Ismail Iqbal Securities.

The cost of sales was reported at Rs. 18.87 billion, down by 21.96 percent compared to Rs. 24.18 billion in the same period of the previous financial year. This took the gross profits to Rs. 673 million, down by 62.36 percent compared to Rs. 1.78 billion in the same period last year.

The other income of the company increased by 52.5 percent during the quarter to Rs. 787 million as compared to Rs. 516 million in the same period last year on the back of higher fund size and elevated deposit rates.

Distribution and marketing costs increased by 1.88 percent in the period under review to Rs. 216 million compared to Rs. 212 million in the same period last year. Administrative expenses increased to Rs. 328 million compared to Rs. 272 million in the same period last year.

The financing cost of the company increased by 46.4 percent to Rs. 41.26 million compared to Rs. 28.05 million in the same period last year.

The effective tax rate surged to 342%, further exacerbating the bottom line, likely due to super tax adjustment, according to a report by Ismail Iqbal Securities.

Honda reported a loss per share of Rs. 2.70 compared to earnings per share of Rs. 6.58 in the same period last year.

The company’s scrip at the bourse closed at Rs. 163.77, down by Rs. 2.73 or 1.64 percent, with a turnover of 27,115 shares on Wednesday.


  • You should disclose the news of their customers whom they looted this year who booked their cars and they looted them on the name of price increase and didn’t deliver them cars even after a one year wait.


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