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.
| Unconsolidated (un-audited) Financial Results for quarter ended September 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Sep 24 | Sep 23 | % Change | |
| Sales | 45,523,571 | 38,563,663 | 18.05% |
| Cost of sales | (41,869,630) | (36,118,375) | 15.92% |
| Gross Profit/ (loss) | 3,653,941 | 2,445,288 | 49.43% |
| Administration expenses | (326,483) | (245,658) | 32.90% |
| Distribution and selling expenses | (971,853) | (806,207) | 20.55% |
| Share of net profit of an Associate | 17,158 | 3,229 | 431.37% |
| Other Income | 2,792,573 | 2,235,783 | 24.90% |
| Other Operating Expenses | (98,783) | (174,045) | -43.24% |
| Financial (charges) / income | (27,567) | (19,563) | 40.91% |
| Profit/ (loss) before taxation | 5,038,986 | 3,438,827 | 46.53% |
| Final tax / levies | (68,859) | (112,195) | -38.63% |
| Net profit/ (loss) for the period | 4,970,127 | 3,326,632 | 49.40% |
| Basic earnings/ (loss) per share | 25.33 | 15.77 | – |
Amount in thousand except for EPS
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Posted on: 2024-10-30T12:18:16+05:00
