Atlas Honda’s profit surges 65% in 9MMFY23

January 26, 2024 (MLN): Atlas Honda Limited (PSX: ATLH) reported its profitability for nine months ended December 31, 2023, wherein the profit after tax clocked in at Rs6.08 billion [EPS: Rs49.01] compared to a profit of Rs3.69bn [EPS: Rs29.72] in the same period last year (SPLY).

Going by the results, the company's top line increased by 12.63% YoY to Rs115.42bn as compared to Rs102.48bn in SPLY.

The cost of sales also rose by 12.02% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 21.75% YoY to Rs7.82bn in 9MMY23.

During the review period, other income surged by 2.14x YoY to stand at Rs6.24bn in 9MMY23 as compared to Rs2.92bn in SPLY.

On the expense side, the company observed a rise in sales and marketing expenses by 15.70% YoY while other expenses fell 3.35% YoY to clock in at Rs2.26bn and Rs750.37m respectively during the review period.

The company’s finance costs rose by 28.10% YoY and stood at Rs55.15m as compared to Rs43.05m in 9MMY23, mainly due to higher interest rates.

On the tax front, the company paid a significantly larger tax worth Rs4.23bn against the Rs2.28bn paid in the corresponding period of last year, depicting an increase of 85.51% YoY.

Amount in thousand except for EPS

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