May 20, 2019 (MLN): Honda Atlas Cars Pakistan Limited (HCAR)’s board of directors meeting is currently underway where the company is expected to review and finalize its financial statement for the quarter ended March 2018.
The following brokerage houses have shared their projections of the company’s net gains for this period and the cumulative MY19:
Brokerage House | 4QMY19 | EPS (% Change over year) | MY19 | EPS (% Change over the year) |
|---|---|---|---|---|
IGI Securities | Rs.650 million | Rs.4.53 (-53%) | Rs.3.33 billion | Rs.23.3 (-49%) |
Ismail Iqbal Securities | Rs.749 million | Rs.5.24 (-45.5%) | Rs.3.43 billion | Rs.24.02 (-47%_ |
Next Capital | Rs.636 million | Rs.4.46 (-54%) | Rs.3.32 billion | Rs.23.24 (-49%) |
JS Global Capital Limited | Rs.408 million | Rs.2.85 (-70%) | Rs.3.1 billion | Rs.21.64 (-52%) |
According to the analytical projections given by these research houses, the hefty fall in quarterly profitability is a result of poor performance in sales, weaker margins and noticeable declines in non-core income.
Despite improved prices, there are chances that the company will report decline in sales numbers. Mr. Taimoor Asif at Next Capital pointed out in his preview that , “The flagship brands of Civic & City have declined by 16%YoY collectively during the quarter under review, while BR-V continued its struggle to gain market share whose sales declined by 33%YoY during the quarter.”
Moreover, the input cost are also expected to have expanded in light of PKR devaluation, which the company couldn’t manage to completely pass on to its consumers.
Mr. Ahmed Lakhani at JS Global has explained in his research note that the reason why non-core income is expected to drop is because of “the sharp reduction in cash & cash equivalents.”
Copyright Mettis Link News
28050
