Honda Atlas Cars’ profits decline 57.5pc
KARACHI: Honda Atlas Cars (HCAR) has announced a net profit of Rs601.595 million for the quarter ended December 31, 2018, which is 57.5 percent lower than the profit of Rs1.416 billion recorded in the same period last year. The earnings per share (EPS) clocked in at Rs4.21 for the period under review compared with EPS of Rs9.92 posted in the same period last year. Danyal Adil at Topline Securities said earnings were dragged down by both lower sales as well as lower gross profit margins. “The primary reason for falling gross profit margins is the 26 percent rupee depreciation between December 2017 and December 2018, which has led to increase in cost of both local and imported parts”. Honda Atlas Cars (HCAR) did not announce any payouts along with the corporate earnings. [the_ad id="31605"] The sales revenue during the quarter stood at Rs21.29 billion as against sales of Rs21.797 billion in the same period last year. “Earnings were also dragged down by 67 percent increase in other operating costs originating from exchange loss, we believe. Moreover, 50% decline in other income also reduced the bottom-line. The decline in other income is a result of lower cash and short term investments due to reduced advances from customers available to the company, we believe,” Topline Securities analyst said.