ATLH’s net profit clocks in at Rs1.5bn in 1QMY23

July 29, 222 (MLN): Atlas Honda Limited today has unveiled its financial statement for the first quarter ended on June 30, 2022, as per which the company recorded a profit after tax of Rs1.50 billion (EPS: Rs12.11), up by 12.7% YoY against a net profit of Rs1.33bn (EPS: Rs10.75) in the same period a year ago, the company's filing on PSX showed today.

This increase in profits is mainly due to strong volume growth and a better sales mix.

Pursuant to the financial statement issued by the company, the topline witnessed an upsurge of 22.6% YoY to Rs37.69bn.

However, gross margins experienced a decrease from 7.8% of the corresponding period to around 7%, owing to an increase in raw material prices, rising energy cost, and depreciation of PKR against the US dollar with a less than commensurate increase in selling prices.

On the cost side, the company’s major expense heads i.e., sales and marketing expenses moved up by 18.82% YoY from Rs543 million to Rs642mn due to higher volumes, inflation, spending on promotional campaigns, and communication activities to support the core business.

In addition to it, the administrative costs have also increased by the same growth rate to Rs211.4mn owing to an increase in personnel cost and effects of general inflation.

Other operating income, net of financial cost at Rs758.5mn is an encouraging 85.81% higher than the corresponding period on account of efficient treasury operations and an increase in the policy rate.

On the tax front, the effective tax rate increased to 36% in the review period from 31% in 1QMY23.

While the macroeconomic situation undergoes a re-alignment, the company remains confident in continuing its journey of sustained long-term growth, Amir H, Shirazi, Chairman of the company said.

The company is well poised and has demonstrated its ability to avail new opportunities and handle adversity with an aim to keep building a long-term business proposition that increases stakeholder value, he added.

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