Karachi July 26 2023: Atlas Honda Limited, the largest bike manufacturer of Pakistan, report profit of PKR 1.6 billion for quarter ended June 2023 compared with profit of PKR 1.5 billion in the same period last year, according to company filing to the exchange.
The sales of the company declined by 31.2 percent during the quarter to 235 thousand units compared with sales of 342 thousand units in the same period last year.
Company gross margin decreased to PKR 1.9 billion for the quarter from PKR 2.6 billion in the same quarter last year. However, higher other income of PKR 2.0 billion for the quarter lift the company's profit to PKR 1.6 billion.
During the previous year, the Company successfully completed the 1.5 million capacity expansion project. The new Stamping Plant in Sheikhupura was also commissioned on time. The plant has reduced transportation and material management cost. Rework & rejection cost is also being brought down through various quality assurance measures. With focus on localization, 20 High Pressure Die Casting (HPDC) dies and 14 Low Pressure Die Casting (LPDC) dies were also developed indigenously. Manpower productivity was also enhanced by optimizing shift operations, minimizing variable downtime and line balancing. The Company recognizes that development of resources across its supply chain is necessary for long term success. As a result, the Company continued to enhance vendor improvement partnerships (VIP) with its suppliers for optimum utilization of their resources.
Periodic reviews of energy efficient equipment, re-sourcing, localization of cutting tools and expansion of solar energy projects have paved the way for sustainable development. The Company completed the third phase of its solar energy initiative. Cumulative installed base has now crossed 8.5 MW and greatly helping in reducing energy cost.
The Company is a subsidiary of Shirazi Investments (Private) Limited holding 52.43% shareholding. Another major shareholder is Honda Motor Company Limited – Japan holding 35% of the shares.
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