KARACHI: Despite easing import restrictions on opening letters of credit, Honda Atlas Cars Ltd (HACL) company’s profit plunged to Rs143m in October-December 2023 from Rs810m in the same period last year.

In a stock filing on Wednesday, the auto assembler informed that its sales posted a steep drop to Rs12bn in the three months from Rs23bn in the same period ending December 2022.

HACL did not declare any cash dividend, bonus shares or right shares.

The auto sector had been under pressure due to various factors, including dwindling demand caused by rising prices and expensive auto financing. The sector also faced challenges such as frequent plant closures due to restrictions on opening LCs for the import of parts, leading to a shortage of essential components.

Published in Dawn, January 25th, 2024