Honda Atlas Cars Pakistan Limited (HCAR) has posted earnings of PKR 242mn (EPS: PKR 1.69), decline of 77% YoY and 79% QoQ compared to PKR 1,050mn (EPS: PKR 7.36) and PKR 1,169mn (EPS: PKR 8.18), respectively.
HCAR recorded net revenue of PKR 17,880mn in 1Q, down by 25% YoY / 26% QoQ due to volumetric decline of 33% YoY / 28% QoQ to 8,346 units (Civic/City: 6,980 units; BR-V: 1,366 units). Pertinently, margins dropped to 7.6% in 1QME20 vs. 9.0% in 1QME19 (4QME19: 7.8%). The decline in margins amid drastic PKR depreciation of 25% YoY along with increase in prices of local assemble raw materials.
Meanwhile, other expenses surged by 113% YoY and 421% QoQ to PKR 740mn due to higher exchange losses in the period under review given negative movement of PKR against USD and JPY.