Atlas Honda’s profit surges 56% YoY in 1HCY23

October 23, 2023 (MLN): Atlas Honda Limited (PSX: ATLH) recorded a robust profit of Rs3.56 billion in the first half of calendar year 2023, marking an impressive YoY increase of 56.14%.

This translates to earnings per share (EPS) of Rs28.68, a significant improvement compared to the Rs2.28bn profit [EPS: Rs18.37] reported in the corresponding period of the previous year.

Along with the results, the company announced an interim cash dividend for the half year ended September 30, 2023 at Rs17 per share i.e. 170%.

Going by the results made available by the company on the PSX, the company's top line went up by 10.29% YoY to Rs74.18bn as compared to Rs67.26bn in SPLY.

The cost of sales also rose by 10.58% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 5.78% YoY to Rs4.3bn in 1HCY23.

Moreover, during the review period, ATLH earned a handsome other income of Rs4.26bn as compared to Rs1.83bn in SPLY, marking a substantial rise of 2.32x YoY.

On the expense side, the company observed a rise in sales and marketing expenses by 16.11% YoY while other expenses declined by 14.14% YoY to clock in at Rs1.47bn and Rs380.55m respectively during the review period.

The company’s finance costs grew by 28.30% YoY and stood at Rs36.64m as compared to Rs28.56m in 1HCY22, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs2.64bn against the Rs1.47bn paid in the corresponding period of last year, depicting a rise of 79.75% YoY.

Amount in thousand except for EPS

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