The financial results for the second quarter, which concluded on September 30, 2022, have been released by Honda Atlas Cars Pakistan Ltd. (HCAR). Honda reports a Big Loss
The company reported a loss of Rs. 385.28 million in a statement to the Pakistan Stock Exchange, compared to a profit after tax of Rs. 939.20 million for the same time the previous financial year.
The overestimated effective tax rate has been the leading cause of the divergence.
The company’s profits decreased by 85.43 per cent to Rs. 0.272 billion during the first half of the current fiscal year compared to Rs. 1.867 billion during the same fiscal year.
According to a report by Ismail Iqbal Securities, sales in the period of July to September this year fell by 24.74 per cent to Rs. 19.54 billion from Rs. 25.97 billion in the same period last year as a result of a 40 per cent/39 per cent Quarter on Quarter/Year on Year decline in car sales volumes, amid SBP import restrictions and lower auto-financing.
Compared to Rs. 24.18 billion during the same period of the prior fiscal year, the cost of sales decreased by 21.96 per cent to Rs. 18.87 billion. However, compared to Rs. 1.78 billion in the same time the previous year, this reduced the gross earnings to Rs. 673 million, a decrease of 62.36 per cent.
Due to larger fund sizes and better deposit rates, the company’s other revenue climbed by 52.5 per cent during the quarter to Rs. 787 million from Rs. 516 million during the same period last year.
Compared to the previous year, distribution and marketing expenses grew by 1.88 per cent, or Rs. 216 million, to Rs. 216 million. Compared to last year’s period, administrative costs rose to Rs. 328 million from Rs. 272 million.
In comparison to the same period last year, when the company’s finance costs were Rs. 28.05 million, they rose by 46.4 percent to Rs. 41.26 million.
According to a study by Ismail Iqbal Securities, the effective tax rate increased to 342%, further hurting the bottom line, probably due to the super tax adjustment.
Compared to the same period last year, Honda reported a loss per share of Rs. 2.70 as opposed to Rs. 6.58 in earnings per share.
The company’s stock at the exchange ended the day on Wednesday at Rs. 163.77, down Rs. 2.73 or 1.64 percent, with a turnover of 27,115 shares. Honda reports a Big Loss
