Highlights:
- Honda Cars reported its earnings to the Pak Stock Exchange
- The company gained a Rs. 273 Million half-year profit.
- Total Earnings Reduced by 159%
- Sales Revenue Reduced by 35%
Honda Cars reported its 2nd quarter earnings from July to September 2022 to the Pak Stock Exchange, gaining a Rs. 273 Million half-year profit.
Half Year Revenue Rose by 4%
The good news for Honda is on the YoY (year on year) terms, where it saw a half-year revenue increase of 4%.
The revenue increased from Rs 47.7 billion to Rs 49.7 billion on a YoY basis.
The rest of the reported numbers show hefty losses, details of which are mentioned below.
Total Earnings Reduced by 159%
Honda’s total earnings were reduced by 159% on a quarter-on-quarter (QoQ) basis, from a profit of Rs 658 million to a loss of Rs 385 million.
The loss translates into a half-year profit of 273 million, which is an 85% year-on-year (YoY) reduction from the Rs 1.867 billion it recorded in 2021 in the same period.
Sales Revenue Reduced by 35%
Honda’s sales revenue dropped by 35% QoQ from Rs 30 billion to Rs 19.5 billion.
Cost of Sales Rose by 94%
Cost of sales as a percentage of sales revenue also rose on a QoQ basis from 94% to 97% leading to the gross profit margin decline, from 6% to 3%.
