Pakistan's largest bus manufacturer records over billion rupees loss

Sale of Hinopak's trucks and buses decreased, to 1277 units from 2435 units in the corresponding period of the last
29 Jan, 2020
  • Sale of Hinopak's trucks and buses decreased, to 1277 units from 2435 units in the corresponding period of the last year, showing a decline of over 47 percent.
  • The sales revenue of Hinopak for the nine months decreased to Rs9.96 billion from Rs15.39 billion

The largest manufacturer of buses in Pakistan, Hinopak, announced an after tax loss of Rs1.828 billion for the third quarter of 2019.

As per the financial statements released by the company for the nine months ended December 31, 2019, the sale of Hinopak's trucks and buses decreased, to 1277 units from 2435 units in the corresponding period of the last year, showing a decline of over 47 percent.

Meanwhile, the sales revenue for the nine months decreased to Rs9.96 billion from Rs15.39 billion, whereas the gross loss stood at Rs325.95 million as compared to gross profit of Rs935.33 million in the corresponding period of last year.

The finance cost stood at Rs847mn (including net exchange loss of Rs154mn) in comparison with the finance cost of Rs822 million (including net exchange loss of Rs776 million) incurred in the corresponding period of the last year, the increase is due to higher level of borrowing during the period to meet the working capital requirement together with the impact of increase in borrowing rate.

The loss after tax stood at Rs1,828 million compared to loss of Rs593 million in the last year's corresponding period leading to loss per share of Rs147.41, as compared to last year where it stood at Rs47.80 loss per share.

“Pakistan's economy is still in difficult situation; the future is expected to remain challenging as economy is yet to pick up the momentum after which it is expected that overall size of commercial vehicle industry may increase,” said the company.

Just days ago, Pakistan auto sector giant, Honda Atlas Cars Limited reported a loss of Rs41.25 million during the third quarter that ended on December 2019.

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