HomeLatest newsAutoHonda Posts Massive Rs. 2.5 Billion Profit in FY 2022

Honda Posts Massive Rs. 2.5 Billion Profit in FY 2022

Honda Atlas Cars Limited (HCAR) posted a profit after tax of Rs. 2.50 billion in the full year ended March 31, 2022 (FY2022), compared to a profit of Rs. 1.79 billion in the same period of last year, according to the notification filed to the Pakistan Stock Exchange (PSX).

This is an increase of 40 percent as compared to the previous year.

Along with the result, Honda Atlas Cars also announced a final cash dividend of Rs. 7 per share.

The sales of the company during the year grew by 60 percent to Rs. 108.04 billion from Rs. 67.36 billion was recorded in the corresponding period last year. The increase in net sales was accredited to high demand for City’s new variant and an increase in prices during the year.

The revenues surged due to the increase in the sales volume of units during the year.

The company reported a gross profit of Rs. 5.57 billion up by 48 percent as compared to Rs. 3.77 billion that was posted in the same period last year.

The distribution and marketing expenses were increased to Rs. 1.13 billion as compared to Rs. 736 million. The other income of the company increased by 118 percent to Rs. 2 billion from Rs. 918 million due to the increase in the new car bookings.

The financing cost of the company had decreased to Rs. 115.91 million from Rs. 116.15 million during the period.

The company reported earnings per share of Rs. 17.58 as compared to earnings per share of Rs. 12.56

HCAR’s Performance

HCAR has had an eventful FY2022 due to various factors. One of them was the arrival of new automakers and cars that stunted the demand of its top sellers, namely, Honda City and Civic.

However, between July 2021 and March 2022, HCAR regained its market share, with the launch of new Honda Civic and City models. By the 10th month of FY2022, the company has sold 227,822 cars, recording an increase of 50 percent in sales compared to the same time last year.

However, time will tell whether HCAR can keep up its profitability as all automakers are expecting a decline in sales due to ongoing price hikes and operational cost increases.

Furthermore, the State Bank of Pakistan (SBP) has also reduced the finance tenure on cars with engines bigger than 1000cc. It bears mentioning that auto financing enables a large number of car sales. Like other carmakers, HCAR’s sales are also likely to sustain a blow due to SBP’s restrictions.

Abdul Qadeer
Abdul Qadeerhttps://pakistanwap.com
My Name is Abdul Qadeer. And CEO Pakistanwap ( JamilBaba ) 😊
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