In a remarkable financial turnaround, Honda Atlas Cars (Pakistan) Limited has announced a profit after tax of Rs928 million for the quarter ended June 30, 2021.
This marks a notable improvement from the loss of Rs511 million reported in the same quarter of the previous year, signaling a positive trajectory for the renowned car manufacturer.
The company’s financial results were presented before the board of directors on Thursday, July 29, 2021. Despite the substantial profit, the board recommended no cash dividend, bonus shares, or right shares for the period under review, indicating a strategic approach towards further strengthening the company’s financial position.
Honda Atlas Cars reported earnings per share (EPS) of Rs6.5, a significant turnaround from the loss per share of Rs3.58 recorded in the corresponding quarter of the previous year. This positive shift reflects the company’s effective operational strategies and improved financial performance.
One of the key drivers of this impressive performance is the significant increase in sales, which surged to Rs21.76 billion for the quarter ended June 30, 2021, compared to Rs6.5 billion in the same quarter of the previous year. This substantial growth in sales revenue underscores the market demand for Honda Atlas Cars’ products and the company’s ability to capitalize on opportunities in the automotive sector.
Additionally, Honda Atlas Cars announced a gross profit of Rs1.59 billion for the quarter under review, representing a substantial improvement from Rs54.22 million reported in the corresponding quarter of the previous year. This robust gross profit margin reflects the company’s effective cost management initiatives and enhanced operational efficiency.
However, despite the overall positive performance, administrative expenses witnessed an increase, totaling Rs231 million for the quarter ended June 30, 2021, compared to Rs147 million in the same quarter of the previous year. While the rise in administrative expenses may indicate increased investment in operational infrastructure and administrative functions, the company will likely continue to focus on optimizing costs to ensure sustainable growth and profitability.
The significant turnaround in Honda Atlas Cars’ financial performance highlights the resilience and adaptability of the company in navigating challenging market conditions. With a strengthened financial position and robust sales momentum, Honda Atlas Cars is well-positioned to capitalize on future growth opportunities and further solidify its position as a leading player in the automotive industry in Pakistan.
As the company continues its journey towards sustained profitability and growth, stakeholders can look forward to continued innovation, product excellence, and customer-centric initiatives from Honda Atlas Cars, driving value creation and delivering superior returns in the times ahead.
