Atlas Honda’s net earnings shrink by 10.8% to Rs 2.24 bln

January 24, 2020 (MLN): Atlas Honda Limited (ATHL) has announced its financial results for the nine months ended on December 31, 2019. As per the results, the company has witnessed the decline in its net earnings by 10.8% to Rs 2.24 billion against Rs 2.51 billion of the same period last year.

During the period, the sales revenue were up by 5.8% YoY, but more than a proportionate increase in the cost of sales made the gross profits decline by 8.2% YoY. Therefore, the gross margin shrunk from 8.5% to 7.16%.

More notably, the company bore 7.7% YoY sales and marketing expenses from Rs. 1.39 billion to Rs. 1.5 billion. The share of profit of associated companies plunged by 70.7% YoY to clock at Rs 3.8 million. However, other income increased by 34.5% YoY owing to an increase in income from financial assets.

Further, the finance cost surged by 59.2% YoY to Rs 22 million when compared to the prior year owing to the higher interest rate during the period under review.

ATHL’s basic and diluted earnings per share have been reported at Rs 18.07 per share while those recorded last year were Rs 20.26 per share.

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