[dropcap]I[/dropcap]n Pakistan, the overall automobile industry remained buoyant during first three quarters of the FY2016-17 after adjusting for some 5,000 and 45,000 units generated by the Punjab government scheme in the previous and last year respectively.
The total industry production during this period was 128,109 units against 90,125 units in the same period of previous year. Accordingly the sales were also up to 124,837 units against 90,610 units in the same corresponding period, previous year.
On the other hand, Honda Atlas Cars (Pakistan) Limited committed to meet customer expectations, and to offer good value for money recorded sales and growth profit in last two years.
Honda is a jnt venture between Honda Motor Company Limited Japan, and the Atlas Group of firms, Pakistan. The company was organized in November 1992 and joint venture agreement was inked in August, 1993. Since then the Dealerships network has enlarged and now the company has twenty one 3S (sales, service and spare parts), eighteen 2S (service and spare parts) and five 1S (spare parts) authorized dealerships network in all major regions of the country.
The company’s production and sales recorded growth of 24.8 percent and 33.5 percent respectively in the last above-said years. Production for first three quarters closed December 31, 2016 was 23,330 units against 18,699 units in the same period, last year. Sales enhanced to 23,816 units against 17,836 units of previous year.
The launch of 10th generation Honda Civic attracted overwhelming response from customers and its sales increased by 102.3 percent over the corresponding period of last year. Its Honda City continued to enjoy steady progress and showed 8.5 percent rise in sales, over the same period, previous year.
During 2016 the management achieved another milestone of selling 31,780 units, the highest in any year. Lastly it had sold a register 28,579 units in 2015-16 fiscal, which was bettered this year by 11.2 percent.
Honda Atlas Cars owes this success to its customers who have always reposed trust and confidence in its products. The management has also attained production milestone of 300,000th unit on October 20, 2016.
During this period, the company has launched a variety of models of Civic and City offering Joy of buying to its valued customers.
Financial experts has revealed that the sales for the period closed December 31, 2016 enhanced by 49.6 percent and registered at Rs 41,729.0 million as compared to Rs 27,896.1 million in the same period of previous year. This was largely because of growth in sales of new Honda Civic and consistently rising demand for Honda City.
Cost of sales was Rs 35,420.7 million as compared to Rs 23,716.1 million. Gross profit enhanced by greater than 50 percent to Rs 6,308.4 million as compared to Rs 4,180.0 million of last same period, showing enhanced GP margin of 15.12 percent as against with 14.98 percent of previous year.
The increase in gross profit was chiefly because of growth in sales volume and rationalization of production cost efforts. Administration and selling expenses rose to Rs 691.1 million as compared to Rs 479.3 million.
However, as percentage of sales, expenses equate to 1.66 percent during the period against 1.72 percent of last year.
Other income enhanced greater than thrice to Rs 665.6 million as compared to Rs 208.9 million, whereas other financial charges rose from Rs 345.3 million of previous year to Rs 444.1 million on account of statutory provisions. PBT (profit before tax) enhanced to Rs 5,838.8 million for the period under review against Rs 3,564.3 million in the same period of previous year.
PAT (profit after tax) enhanced by 65.7 percent to Rs 4,015.9 million, against Rs 2,423.2 million. The after tax return on equity improved to 36.6 percent whereas earnings per shares (EPS) increased to Rs 28.12 as compared to Rs 16.97 for the corresponding period of previous year.
The company is listed in Karachi, Lahore and Islamabad stock exchanges. In response to the overwhelming orders from customers on the launch of new Honda Civic, Honda Atlas started double shift operations in the quarter under review to speed up deliveries and reduce waiting period of its valued customers.
To cater the requirements of second shift, total workforce was raised by 45 percent. The company is cognizant of the pressing demand and is geared up to meet future targets as well.
The management always strives to give outstanding service to their valued customers. In addition to offering regular service to customers, the company also regularly conducts service campaigns, to facilitate customer’s need for service.
This has given the customers absolute confidence in the company’s vehicles, clearly evident from the ever rising sale volumes.