Atlas Honda declares Rs32 dividend as profit surges 49%

October 30, 2024 (MLN): Atlas Honda Limited (PSX: ATLH) experienced a rise of 49.4% YoY in its quarterly earnings, with its profit after tax rising to Rs4.97 billion [EPS: Rs25.33], compared to the bottom line of Rs3.33bn [EPS: Rs15.77] in the same period last year (SPLY).

In view of the improved financial closure, the Board of Directors (BoD) has also recommended a cash dividend of Rs32 per share i.e. 320%

The company's sales improved 18.1% to Rs45.52bn as compared to Rs38.56bn in SPLY.

The cost of sales also increased, but sales growth outpaced it, leading to a 49.4% improvement in gross profit, reaching Rs3.65bnin Q3 CY24.

The gross margins improved to 8.0% as compared to 6.3% in SPLY.

During the period under review, other income also rose by 24.9% to stand at Rs2.79bn in Q3 CY24 as compared to Rs2.24bn in SPLY.

On the expense side, the company's administration expenses rose 32.9% YoY to Rs326.48m and distribution and selling expenses increased 20.6% YoY to Rs971.85m.

Conversely, other operating expenses fell 43.2% YoY to Rs98.78m.

The company’s finance cost expanded by 40.9% and stood at Rs27.57m as compared to Rs19.56m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs68.86m against the Rs112.2m paid in the corresponding period of last year, depicting a fall of 38.6%.

In summary, higher sales, combined with additional income, significantly offset rising expenses and finance costs, resulting in a strong financial outcome.

Amount in thousand except for EPS

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