The premier bike-maker Atlas Honda Limited announced its half year financial results ending Sep 2017 registering a top line growth of 24 percent. This was brought on by a 23 percent growth in motorcycle sales. The company expanded its product portfolio and introduced a new model to its fleet in May which has been doing well in the market. Month on month average sales for Honda has been around 86,000 units; against 69,000 units this period last year.
Average price per motorbike remained the same during the period against last year and the company managed to keep costs at the same level. As a result, margins held at 11 percent. Margins have historically remained at these levels due to the high proportion of imported content in manufacturing motorbikes and foreign currency movements ultimately have an impact on margins. The company spent on marketing and promotional campaigns to highlight new product and reach more consumers whereas administrative costs were higher because of higher net personnel costs. Indirect expenses remained 4 percent of revenues during the period, same as last year which is positive.
The company is a market leader in the two- wheeler industry and contributed to about 60 percent of the motorbike demand catered to by local players. It continues to keep that market share despite an influx of imported motorcycles circulating in the economy. The company has been expanding its capacity from 0.75 million to 1.35 million units annually at the back of expected demand projections which would further pad the bottom-line, given costs are kept a tight fist on.
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