HCAR annual profits suffer a blow of 40%

May 20, 2019 (MLN): Honda Atlas Cars (Pakistan) Limited (HCAR) has declared its financial accounts for the year ended March 31, 2019 in its Board of Directors meeting today, whereby the company’s net profit for the period is recorded at Rs.3.85 billion (EPS:26.97) which is 40% lesser than the net income recorded last year.

This result is in line with the market's expectation as various brokerage houses projected that the company would suffer a decline in annual net income.

The company’s overall sale during the period (Rs.95 billion) inched up by nearly 4% while due to  PKR devaluation the cost of sales (Rs.87.8 billion) expanded by 8%, thus weighing down the gross profits (Rs.7.3 billion) by 30%, and gross margin by 374 basis points.

Additionally, due to overall expansion in other expenses and a substantial decline in non-core income, the company’s operating profits crashed by around 41%, YoY.

These outflows managed to outweigh the relief brought by declines in Finance costs (down by 22%) and taxation (down by 41%).

On another note, HCAR has decided to pay out a final cash dividend of Rs.12.15 per share, i.e. 121.5%, for this year end.

Profit and Loss statement for the year ended March 31, 2019 ('000 Rupees)

 

Mar-19

Mar-18

% Change

Sales

                       95,128,289

                       91,522,872

3.94%

Cost of sales

                     (87,824,215)

                     (81,073,777)

8.33%

Gross profit

                         7,304,074

                       10,449,095

-30.10%

Distribution & marketing cost

                           (931,787)

                           (916,906)

1.62%

Administrative expenses

                           (800,040)

                           (677,602)

18.07%

Other operating income

                         1,313,522

                         1,883,025

-30.24%

Other operating expenses

                       (1,281,007)

                       (1,244,569)

2.93%

 

                       (1,699,312)

                           (956,052)

77.74%

Profit from operations

                         5,604,762

                         9,493,043

-40.96%

Finance cost

                             (11,189)

                             (14,476)

-22.71%

Profit before taxation

                         5,593,573

                         9,478,567

-40.99%

Taxation

                       (1,742,460)

                       (2,984,117)

-41.61%

Profit after taxation

                         3,851,113

                         6,494,450

-40.70%

Earnings per share – basic and diluted

                                  26.97

                                  45.48

-40.70%

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Posted on: 2019-05-20T12:40:00+05:00

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