KARACHI: Honda Atlas Cars reported a 50 per cent drop in its profit after tax down to Rs509.7 million in the July to September period of its half yearly financial results filed with the stock exchange on Thursday. The company announced a nil cash dividend.

The sharp fall comes on the back of plummeting sales, which fell from Rs25.82 billion in the same three month period last year to Rs11.65bn this year.

Earnings per share fell from Rs7.22 to Rs3.57 in the same period. The fall in sales revenue is largely due to a fall in sales volume dropping by 67pc year-on-year. Finance cost leapt sharply from Rs20m in the same period last year to Rs200m this year.

According to Topline Securities, HCAR saw its gross margin improve by 288 basis points to 10.4pc “on back of higher car prices and cost efficiencies” in the second quarter.

Published in Dawn, November 15th, 2019