Honda Atlas Pakistan faces the worst blow in decades
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ISLAMABAD - Honda Atlas Pakistan faces the worst blow in decades with the announcement of the financial results.
Honda Atlas has announced its financial results for the 3rd quarter that ended on December 31st 2019.
The company has reported a loss of Rs. 41.25 million as compared to a profit of Rs. 601 million recorded in the same period last year.
During the third quarter, the company sales were down by more than half as compared with the same period last year. The sales were down by 53.70% to Rs. 9.86 billion as compared with Rs. 21.29 billion recorded last year.
The major reasons behind the drop in profits ware the decrease in sales as the volumes sunk by 65.90% due to a rise in prices, rising finance cost by 171.7 times, low gross margins and low demand in the country. However, the Rupee/Dollar parity remained largely stable during the quarter (OCT-DEC). ------------------------------
Furthermore, the country’s automobile sector is facing one of the worst slowdowns in decades, primarily from contracting demand due to poor customer sentiment. Low demand in recent months has forced the automobile companies in declaring frequent non-production days.
The company observed an astonishing 64 Non-Production days during the period: *Month* *Days* October 18 November 23 December 23
------------------------------ However, the cost of sales during the quarter was stated at Rs. 9.21 billion, down 53.15% against Rs. 19.66 billion due to low production, which took the gross profits to Rs. 646 million against Rs. 1.62 billion.
