KARACHI: Honda Atlas Cars Pakistan Ltd. has stopped car production during the month of March 2023 due to import restrictions.
The company stated that it is not in a position to continue with its production and ultimately has to shut down its plant from March 09, 2023 to March 31, 2023.
Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting opening of LCs for import of CKD kits, raw materials and halting foreign payments, the Company’s supply chain has also been severely disrupted by such measures.
According to the unconsolidated financial results submitted to the Pakistan Stock Exchange (PSX), Honda Atlas announced profit after tax at Rs1.1 billion for nine months period ended December 31, 2022 as compared to Rs2.3 billion during the same period last year, showing a decrease of 52 per cent.
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The company declared earnings per share (EPS) at Rs7.59 for the nine months period ended December 31, 2022 as compared with EPS at Rs16.20 during the same period last year, showing a decrease of 53 per cent.
The company recorded the gross profit at Rs4.3 billion for the nine months ended December 31, 2022 as compared to Rs4.2 billion during the same period last year.
The company’s gross profit was increased 2.4 per cent because the cost of sales were reduced to Rs68.4 billion as compared to Rs73.1 billion in the same period last year.
The profit before tax of Honda Atlas declined by 31 percent at Rs2.4 billion for the nine months ended December 31, 2022 as compared to Rs3.5 billion in the same period last year.
Furthermore, Ghandhara Nissan has also announced to shut down its production plant from March 06, 2023 to March 10, 2023.
The company and its vendors continue to face major hurdles in import of raw materials and receiving clearance of their consignments from commercial banks. This has disrupted the entire supply chain and the vendors are unable to supply raw materials and components to the Company.
