Atlas Battery posts Rs273.43m profit in 1HFY24, down by 65.42% YoY

February 26, 2024 (MLN): Atlas Battery Limited (PSX: ATBA)'s financial statement for 1HFY24 reveals that the company's profit dropped 65.42% YoY to Rs273.43 million [EPS: Rs7.81] compared to a profit of Rs790.82m [EPS: Rs22.58] recorded in 1HFY23.

Going by the results, the company's top line rose 10.67% YoY to Rs18.13bn as compared to Rs16.38bn in SPLY.

The cost of sales increased by 11.96% YoY but was less than proportionate to the growth in sales, resulting in a 2.36% YoY improvement in gross profit to Rs2.25bn in 1HFY24.

On the expense side, the company observed an increase in Distribution costs by 16.63% YoY and administrative expenses by 40.28% YoY to clock in at Rs641.32m and Rs280m respectively during the review period.

Conversely, the other expenses registered a drop of 32.92% YoY to be reported at Rs63.32m in 1HFY24.

The company’s finance cost surged by 3.82x YoY and stood at Rs806.48m as compared to Rs211.33m in SPLY, mainly due to higher interest rates.

The surge in expenses and financing charges weighed heavily on the financial performance of the company, as despite a modest rise in sales, the company's profit dropped.

The inflows to the company from the other income section stood at Rs42.33m, reflecting an YoY growth of 15.81%.

On the tax front, the company paid a lower tax worth Rs229.43m against the Rs390.27m paid in the corresponding period of last year, depicting a decrease of 41.21% YoY.

Amount in thousand except for EPS

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