Atlas Battery reports 39% drop in FY24 earnings, declares dividend

August 29, 2024 (MLN): Atlas Battery Limited (PSX: ATBA)'s earnings for the fiscal year 2024 dropped 39% to Rs1.34 billion [EPS: Rs38.37], compared to a profit of Rs2.2bn [EPS: Rs62.86] reported in the previous fiscal year.

Along with the profit and loss statement, the board of directors of the company has declared a final cash dividend of Rs20 per share for shareholders whose names appear in the register of members as of the close of business on September 12, 2024.

Going by the results, the company's top line slipped 0.9% to Rs41.47bn as compared to Rs41.86bn in SPLY.

On the other hand, the cost of sales rose by 0.4%. The combination of falling sales and rising costs led to an 8% decrease in gross profit, which fell to Rs5.93bn in FY24.

Accordingly, the gross margins worsened to 14.3% as compared to 15.4% in SPLY.

On the expense side, the company’s administrative expenses increased by 31.3% YoY to Rs654.83 million, while selling and distribution expenses rose by 0.5% YoY to Rs1.4 billion.

Conversely, other operating expenses fell 50.7% YoY to Rs187.13m.

The company’s finance cost expanded by 193.3% and stood at Rs1.62bn as compared to Rs552.07m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs811.59m against the Rs1.49bn paid in the corresponding period of last year, depicting a decrease of 45.4%.

Amount in thousand except for EPS

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