ATLH enjoys 82% robust growth in net income

January 28, 2022 (MLN): Atlas Honda Limited today has unveiled its nine-month financial results ended December 31, 2021, wherein the company achieved profit after tax of Rs3.95 billion (EPS: Rs31.84), registering a robust growth of around 82% against a net profit of Rs2.17bn (EPS: 17.52) in the same period a year ago, the company's filing on PSX showed.

This splendid performance is mainly due to higher volumetric sales amid smooth business operations.

Pursuant to the financial statement issued by the company, the topline witnessed an upsurge of 54.7% YoY to Rs96.1bn. This was on account of volume growth achieved through uninterrupted business operations as compared to the country-wide lockdown during most of the first quarter of last year.

Resultantly, the gross profit of the company jumped to Rs7.1bn as compared to Rs4.3bn of the corresponding period last year, expanding gross margins from 6.89% to 7.36% in the said period under review.

On the cost side, the company’s major expense heads i.e., sales and marketing expenses swelled by 36% YoY from Rs1.28bn to Rs1.75bn due to full-scale business resumption, spending on marketing campaigns and inflation. While the administrative costs increased by 13.7% YoY to Rs577mn.

Meanwhile, other income, the share of profit from associate, net of financial charges, and other operating expenses, contributed Rs896.4 million to the bottom line which is 34.7% higher than the corresponding period.

On the tax front, the effective tax rate improved to 30% from 31%.

 Profit and Loss Account for nine-month ended December 31, 2021 ('000 Rupees)

 

Dec-21

Dec-20

% Change

Sales

 96,072,968

 62,084,118

54.7%

Cost of Sales

 (89,001,062)

 (57,809,532)

54.0%

Gross Profit

 7,071,906

 4,274,586

65.4%

Sales and Marketing Expenses

 (1,746,232)

 (1,281,592)

36.3%

Administrative expenses

 (577,860)

 (508,382)

13.7%

Other income

 1,357,498

 969,368

40.0%

Other operating expenses

 (439,373)

 (270,889)

62.2%

Share of profit of an associate

 16,743

 4,268

292.3%

Profit from operations

 5,682,682

 3,187,359

78.3%

Finance Cost

 (38,472)

 (37,253)

3.3%

Profit before taxation

 5,644,210

 3,150,106

79.2%

Taxation

 (1,693,263)

 (976,500)

73.4%

Profit after taxation

 3,950,947

 2,173,606

81.8%

Earnings per share -basic and diluted (Rs)

31.84

 17.52

81.7%

 

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Posted on: 2022-01-28T16:29:48+05:00

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