LAHORE: Atlas Honda Limited (ATLH), the sister company of Honda Cars Pakistan Limited, announced their results for Q3CY2022 on Friday. The company has ended the quarter with a final profit of Rs 777 million which is a 48 per cent quarter-on-quarter (QoQ) decline from Q2CY22. This translates to a half yearly profit of Rs 2.27 billion which is a 8 per cent year-on-year reduction from its Rs 2.487 billion over the same period last year.Â
Atlas Honda’s total sales revenue declined QoQ by 45 per cent from Rs37.68 billion in Q2CY22 to Rs 29.5 billion in Q3CY22. The dip in sales revenue is likely on account of the 27 per cent contraction it saw in its sales over the same period as sales dipped from 341,419 units to 250,132 units. The company’s gross profit margin (GPM) also dipped from 7 per cent to 5 per cent. This is most likely on account of the increase in the cost of goods sold increasing from 93 per cent of the sales revenue to to 95 per cent of the sales over the same period.Â
The ramifications of the increase in the interest by the State Bank of Pakistan (SBP) are also visible in the changes to Atlas Honda’s cost of finance with it seeing a 62 per cent QoQ. On account of Atlas Honda investing in increasing their capacity as it saw a 4 per cent increase of Rs 486 million in its property, plant and equipment and an 11 per cent increase of Rs 5.3 million in intangible assets from Q2CY2022 to Q3CY2022.Â
Similarly, Atlas Honda’s other income saw a 40 per cent QoQ increase. It’s short-term investments fell by 29 per cent over the same period whereas its cash and bank balances increased by 63 per cent or Rs 7.9 billion. The increase in other income is thus, likely, due to Honda benefiting from the interest on these deposits.Â
Atlas Honda’s effective tax rate also clocks in at 45 per cent in comparison to previous quarters showing 37 per cent. The company lists the provision of the super tax for the current and previous year as the reason for this.Â
The quarter ahead looks equally, if not more, difficult for Atlas Honda due to mounting inflation. The lion’s share of Atlas Honda’s sales are attributable to their CD-70 and CG-125. Both products target the more affordable markets, and therefore September’s inflation rate of 23.2 per cent is likely to have a greater multiplier effect on Honda Atlas than its other Japanese counterparts that are gunning for the more premium market segment. This demand destruction is likely to be compounded if there are any further depreciations in the Pakistani Rupee as Honda Atlas would be forced to revise its prices upward, as it has already done so on seven different occasions this calendar year.
Federal Government must introduce new Scooties manufacturing policy in Pakistan immediately,
Old technology available Bikes in Pakistan are more than Five to six decades old and not available anywhere in the world especially 70cc and CG 125cc
Because dipped happend due to increasing price and decreasing the quality of new honda
Since Honda Bike models have been revolutionised in World countries, but in Pakistan we are still manufacturing more than 5 decades models. We have to manufacture latest Honda biked in Pakistan cheaper and affordable to all masses.
open trade with India I want to see where atlas honda will going to stand …andhoon Mai kana raja wali BAAT…wohi copy paste models for lat 45 years SA …altlas honda you only make people fool in Pakistan only ….your competitors are only fraudia like super power …metro..is type paki company…one day you company will close insha’Allah…proce Dekho apni bikes ki
At least agar Shakel buri ho to bat achy kerain
You know how many other companies are being derived from this industry.
Why you don’t buy the latest versions / models of other companies like Yamaha
And China makers ?
Why you people don’t buy new versions of
Honda like CB125 or 100 cc ?
So you least knowledge we keep crying .
At agar Shakel buri ho to bat achy kerain
You know how many other companies are being derived from this industry.
Why you don’t buy the latest versions / models of other companies like Yamaha
And China makers ?
Why you people don’t buy new versions of
Honda like CB125 or 100 cc ?
So you least knowledge we keep crying .
Oh my mom’s
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