As predicted, Honda Atlas Cars (PSX: HCAR) financial statements have started showing a resounding green after the launch of its new 10th generation, Honda Civic and is outperforming by a wide margin since this time last year. The company announced its third quarterly results with a topline of Rs15.7 billion; which more than doubled from this period last year.
Despite considerable increases in its indirect costs, the company saw a 144 percent increase in its after-tax profits clocking at Rs1.49 billion in Q3 against Rs612 million during October to December 2015. The earnings per share stood at Rs10.45 against Rs4.29 between the periods in discussion. Perhaps, the only disappointing statistics are the margins that declined from 15 percent in Oct-Dec 2015 to 14 percent in Oct-Dec 2016. Cost of production in the auto industry are always something to watch out which also depend a lot on global currency movements (yen against dollar).
The results are testament to historic high sales for Honda since it started operations. Between Oct to Dec 2015, total Civic sales stood at 4,426 units; while sales were 8,512 units between Oct to Dec 2016, an increase of 92 percent year on year. The average monthly car sales are also up. This is at a time when car sales overall have been decreasing and competitor Corolla has also seen its numbers plummet in recent months.
Going forwardthough no official announcements have been madeHonda might be introducing a facelift to its City which cant hurt. Watch out for Honda!
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