Pakistan’s leading bike manufacturer, Atlas Honda (ATLH) is getting the impact of economic recession as its Quarterly Profit declined by 30% YoY to Rs. 842 million.
During the April-June’2019 quarter, ATLH achieved Net Revenue of Rs. 22.8 billion as compared to Rs. 22.1 billion in the similar period last year, marking a marginal increase of 3.2%.
In volumetric terms, ATLH sold 291,038 units during the quarter as compared to 311,951 units marking a decline of 7.2% decline.
The Gross profit of the quarter declined to Rs. 1.7 billion, down by 19%. The prime reason for the decline was a persistent devaluation of Rupee against Japanese Yen and US Dollar resulting in substantially higher input costs. ATLH Sales/Marketing expenses increased by 9% to Rs. 524 million, primarily attributable to increased promotional activities.
|Quarter ended April to June|
|“Rs in 000”||2019||2018|
|Cost of Sales||(21,116,323)||(20,006,170)|
|Sales and Marketing Expenses||(524,177)||(481,541)|
|Other Operating Income||263,124||259,030|
|Other Operating Expenses||(90,214)||(114,027)|
|Profit from Operations||1,206,108||1,627,921|
|Share of Profit of an associate – net of tax||2,105||10,000|
|Profit before taxation||1,202,912||1,636,313|
|Profit after taxation||842,127||1,194,508|
|EPS – Rs||6.79||9.63|