Karachi January 25 2022: Honda Car profitability dropped by 41 percent during the quarter ended December 31 2021 despite higher car sales and increase car prices to PKR 446 million as per company filing at the exchange.
In contrast to an unusual beginning last year, the current year took off a smooth start. Honda Car management proactively planned to combat the effects of the possible third and Fourth wave of Covid through effective vaccination drive. The Company also resumed the double shift production to meet the increased demand pushed by the newly launched Honda City.
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During the third quarter ended December 31 2021, the company achieved net sales revenue of PKR 29,538 million as compared to PKR 17,649 million in the corresponding period last year. Company car sales stood at 10K units against 6k units during the same period of last year.
Despite continuous production, contrary to lockdown period last year, resulted in reduced gross profit of PKR 801 million against PKR 1,150 million. The selling and administrative expenses increased to PKR 428 million against PKR 296 million in the wake of enhanced business activity.
Other income improved to PKR 531 million against PKR 244 million. Financial and other charges were recorded at PKR 262 million against 23 million, last year. The Company posted PKR 640 million as profit before tax in comparison to the profit of PKR 1,073 million. After statutory tax adjustments, the net profit for the third quarter arrived at PKR 445 million as compared with PKR 752 million of the corresponding period last year. The earning per share deteriorated to PKR 3.12 for the quarter ended December 31 2021 against PKR 5.26 the corresponding period last year .