Atlas Honda posts record 75.2% rise in profit after tax

January 30, 2025 (MLN): Atlas Honda Limited (PSX: ATLH) has posted a remarkable 75.2% year-on-year (YoY) growth in its profit after tax, reaching Rs10.65 billion (EPS: Rs85.84) for the nine months ending December 31, 2024, compared to Rs6.08bn (EPS: Rs49.01) in the same period last year.

The company’s sales saw a substantial increase of 27.2%, rising to Rs146.86bn from Rs115.42bn in the previous year.

This growth was complemented by a 79.1% rise in gross profit, which climbed to Rs14.01bn, up from Rs7.82bn in the prior year.

The gross profit margin improved significantly, reflecting better efficiency and increased sales performance.

Despite a rise in the cost of sales by 23.5%, which amounted to Rs132.84bn compared to Rs107.59bn in the same period last year, Atlas Honda’s sales growth outpaced the increase in costs, resulting in a substantial improvement in profitability.

The company’s operating expenses also saw increases, with sales and marketing expenses rising by 22.5% to Rs2.84bn, and administrative expenses up by 24.1% to Rs799.71mn.

However, the rise in other income by 18.2%, which reached Rs7.38bn, helped offset some of these increased costs.

The share of profit from an associate surged by 408.4%, reaching Rs41.43mn, compared to Rs8.15mn last year, further boosting the overall profit.

Other operating expenses decreased by 11.7% to Rs662.86mn, contributing to the company’s strong financial performance. Finance costs also grew, up by 55.7% to Rs85.88mn, mainly due to higher interest rates, but this was more than compensated by the growth in sales and other income.

On the tax front, the company paid Rs6.10bn in taxes, reflecting an increase of 57.2% compared to Rs3.88bn in the previous year.

In light of the robust financial results, Atlas Honda’s Board of Directors has recommended a dividend payout to shareholders, which is expected to further enhance the company's appeal in the market.

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