Atlas Honda sees impressive 94% YoY earnings surge in MY23-24, declares dividend

April 30, 2024 (MLN): Atlas Honda Limited (PSX: ATLH)'s earnings witnessed a substantial boost of around 94% YoY during the year ended March 31, 2024 (MY2023-2024), reporting a profit after tax of Rs9.71 billion [EPS: Rs78.24] compared to a profit of Rs5.01bn [EPS: Rs40.33] in the same year last year.

The Board of Directors has also declared a final cash dividend for the year ended March 31, 2024 at Rs30 per share i.e. 300%.

This is in addition to the interim dividend already paid at Rs. 17 per share i.e. 170%. This takes the total cash dividend for the year ended March 31, 2024, to Rs47 per share i.e. 470%.

The company's top line increased by 17.6% YoY to Rs159.29bn as compared to Rs135.49bn in SPLY.

Driven by this sales boost, gross profit improved by 26.4% YoY to Rs12.23bn in MY23-24.

Furthermore, this improvement resulted in the gross margins increasing to 7.68%, compared to 7.14% in the same period last year (SPLY).

On the expense side, the company observed a rise in Administrative Expenses by 24.7% YoY and  Selling And Distribution Expenses by 20.44% YoY to clock in at Rs1.07bn and Rs3.65bn respectively during the review period.

On the other hand, other expenses of Atlas Honda were reduced significantly by 66% YoY to Rs735.29m.

Earnings received an additional boost as other income rose by 98.9% year-over-year (YoY) to reach Rs9.06bn in MY23-24, compared to Rs4.56bn in MY22-23.

The company’s finance cost rose by 34.3% YoY and stood at Rs102.1m as compared to Rs76.03m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs6.03bn against the Rs3.1bn paid in the corresponding period of last year, depicting a rise of 94.6% YoY.

Amount in thousand except for EPS

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