Atlas Honda's profit more than doubles to Rs3.5bn

July 30, 2024 (MLN): Atlas Honda Limited (PSX: ATLH) experienced a rise of 117.0% YoY in its profits during the second quarter of 2024, earning a profit after tax of Rs3.48 billion [EPS: Rs28.02].

That compares with a profit of Rs1.6bn [EPS: Rs12.91] in the same period last year (SPLY).

Going by the results, the company's top line grew 33.1% YoY to Rs47.42bn as compared to Rs35.62bn in SPLY.

The cost of sales rose by 26.9% YoY but was lesser than proportionate to sales rise, which improved the gross profit by 144.0% YoY to Rs4.61bn in Q2 2024.

The gross margins improved to 9.7% as compared to 5.3% in SPLY.

During the period under review, other income grew 19.9% YoY to stand at Rs2.43bn in Q2 2024 as compared to Rs2.03bn in SPLY.

On the expense side, the company's administrative expenses rose 9.0% YoY to Rs240m, selling and distribution expenses rose 26.1% YoY to Rs896.63m, and other operating expenses rose 26.1% YoY to Rs264.34m.

The company’s finance cost surged by 63.0% YoY and stood at Rs27.85m as compared to Rs17.08m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs2.14bn against the Rs1.16bn paid in the corresponding period of last year, depicting an increase of 84.5% YoY.

Amount in thousand except for EPS

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