Honda Pakistan Earned More Profit of 1180% After Tax in H1 2

Honda Atlas Cars Limited HCAR has shown the profit after deduction of the tax, which is Rs.1.86 billion in half year ended September 30, 2021. This profit is more if you compare it with the profit of Rs.145.85 million being earned by the company during the same period of last year.

This profit is earned after the improvement in economic activity, stable policy rate and rapid increase in the activity after the severe lockdown because of the COVID-19. The government has announced the tax relief measures and lower financing rates.

The sales of the car during first half of this year was increased by 77.30 percent to Rs.47.74 billion, when you compare it with the profit of Rs.26.93 billion as recorded in the same period of the last year because of the recovery in auto sales, when the government eased the lockdown due to pandemic. When the sales of the vehicles is boost up, the revenues were also peaked up and the sale volume was rose up to 16,765 units during first half of the year.

The honda company has reported that the gross profit of Rs.3.38 billion was increased by 134.75 percent, when it is compared to Rs.1.44 billion. It is reported that the distribution and marketing expenses were Rs.345 million, when you compare them to Rs.331 million. Other income of the company was increased by 441.5 percent to Rs.851.51 million from Rs.157.25 million because of the increase in new car bookings.
It is reported that the financing cost of the auto company had reduced by 63 percent to Rs.39.54 million, when you compare it to Rs.106.87 million during the same period. The company has earned per share of Rs.13.08, when you compare the earnings per share of Rs.1.02. When you fill this report, scrip of HCAR at the bourse traded at Rs.218, which is Rs.4.83 o r 2.17 percent down and has the turnover of 166,700 shares.

HCAR has launched the 6th generation City in Pakistan at the start of this quarter and it gained good response from the buyers of the cars in Pakistan. The company sold north of 3000 vehicles during September and October 2021 and in the sales of new Honda city, the company has tremendous sales figures.

All HCAR vehicles were increased because of the high fly of the US Dollar and increase in rates of raw materials and freight charges. Now the new City starts its journey from over Rs.2.7 millions and it is going up to over Rs.3.3 million and it is the most expensive vehicle in the segment of subcompact sedan in Pakistan.
The sale of HCAR is likely to take popularity after this price hike and it will get more profit during the next quarter.