ISLAMABAD – Honda Atlas Pakistan faces the worst blow in decades with theannouncement of the financial results.
Honda Atlas has announced its financial results for the 3rd quarter thatended on December 31st 2019.
The company has reported a loss of Rs. 41.25 million as compared to aprofit of Rs. 601 million recorded in the same period last year.
During the third quarter, the company sales were down by more than half ascompared with the same period last year. The sales were down by 53.70% toRs. 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 asthe volumes sunk by 65.90% due to a rise in prices, rising finance cost by171.7 times, low gross margins and low demand in the country. However, theRupee/Dollar parity remained largely stable during the quarter (OCT-DEC).——————————
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Furthermore, the country’s automobile sector is facing one of the worstslowdowns in decades, primarily from contracting demand due to poorcustomer sentiment. Low demand in recent months has forced the automobilecompanies in declaring frequent non-production days.
The company observed an astonishing 64 Non-Production days during theperiod:*Month* *Days*October 18November 23December 23
——————————However, the cost of sales during the quarter was stated at Rs. 9.21billion, 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.
