Rising Costs led Atlas Honda’s Profit to decline to Rs. 842 million

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Rising Costs led Atlas Honda’s Profit to decline to Rs. 842 million

atlas honda pakistan bikes

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
Sales 22,832,003 22,128,662
Cost  of  Sales (21,116,323) (20,006,170)
Gross  Profit 1,715,680 2,122,492
Sales  and  Marketing  Expenses (524,177) (481,541)
Administrative  Expenses (158,305) (158,033)
Other  Operating  Income 263,124 259,030
Other  Operating  Expenses (90,214) (114,027)
Profit  from  Operations 1,206,108 1,627,921
Finance  Cost (5,301) (1,608)
Share  of  Profit  of  an  associate  –  net  of  tax 2,105 10,000
Profit  before  taxation 1,202,912 1,636,313
Taxation (360,785) (441,805)
Profit  after  taxation 842,127 1,194,508
EPS  –  Rs 6.79 9.63

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