Karachi January 26 2023: Honda Car profitability surged by 82 percent during the quarter ended December 31 2022 due to higher sales of Honda HRV and BRV models along with increase in car prices, as per company filing at the exchange.
Share price of the company increase by PKR 3.11 or 2.29 percent after the announcement at Pakistan Stock Exchange.
Honda Car sold 1,616 units of HRV and BRV, an increase of 94 percent year on year, during the quarter against sales of 549 units last year due to launch of HRV variant in the month of October 2022. Honda HRV is attractively priced by the company among other SUVs that resulted in huge success of this variants.
During the third quarter ended December 31 2022, the company achieved net sales revenue of PKR 22,948 million as compared to PKR 29,533 million in the corresponding period last year.
Despite disruption in production due to opening of LCs company reported gross profit of PKR 1,789 million against PKR 801 million last year. The selling and administrative expenses increased to PKR 218 million against PKR 181 million in the wake of enhanced fuel prices.
Other income declined to PKR 324 million against PKR 530 million. Financial and other charges were recorded at PKR 317 million against 16 million, last year. The Company posted PKR 1,180 million as profit before tax in comparison to the profit before tax of PKR 640 million. After statutory tax adjustments, the net profit for the third quarter arrived at PKR 810 million as compared with PKR 446 million of the corresponding period last year. The earning per share deteriorated to PKR 5.68 for the quarter ended December 31 2022 against PKR 3.12 the corresponding period last year .