November 22, 2023 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) unveiled its financial results for the 2QMY23, reporting a profit of Rs675.34 million [EPS: Rs4.73], a notable turnaround from the Rs385.29m loss [LPS: Rs2.7] in the same period last year (SPLY).
Going by the results, the company's top line dipped by 28.61% YoY to Rs13.96bn as compared to Rs19.55bn in SPLY.
The cost of sales decreased by 34.15% YoY to Rs12.43bn. Given that the decline in the cost to sell was greater than proportionate to the sales decline, the gross profit increased by 2.27x YoY to Rs1.53bn in 2QMY23.
On the expense side, the company observed a fall in distribution and marketing costs by 1.88% YoY and other expenses by 71.58% YoY to clock in at Rs212.12m and Rs203.51m respectively during the review period.
Conversely, the administrative expenses of HCAR rose by 16.47% YoY to Rs382.6m during 2QMY23.
The financial results further reveal that the company's profits were supported by the increase in their other income of 13.82% YoY to stand at Rs896.57m in 2QMY23 as compared to Rs787.73m in SPLY.
HCAR’s finance costs rose by 2.91x YoY and stood at Rs120.17m as compared to Rs41.27m in 2QMY22, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs829.64m against the Rs544.32m paid in the corresponding period of last year, depicting a rise of 52.42% YoY.
It is crucial to note that the company encountered significant challenges in maintaining plant operations due to supply chain disruptions.
Despite these challenges, HCAR posted a remarkable turnaround, becoming profitable in 2QMY23 through effective cost management.
At the time of writing, the company's share is being traded at Rs188.4, up by 4.17 rupees or 2.26% compared to its previous close.
The financial results for the six months ended from April to September (1HMY23), the company's profit surged by 3.01x to Rs820.29m, compared to the profit of Rs272.91m reported in the SPLY.
| Financial Results for Quarter ended 30 September 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 13,956,298 | 19,548,699 | -28.61% |
| Cost of sales | (12,429,502) | (18,875,327) | -34.15% |
| Gross Profit | 1,526,796 | 673,372 | 126.74% |
| Distribution and marketing costs | (212,117) | (216,190) | -1.88% |
| Administrative expenses | (382,600) | (328,487) | 16.47% |
| Other Income | 896,574 | 787,733 | 13.82% |
| Other charges | (203,506) | (716,129) | -71.58% |
| Finance cost | (120,169) | (41,265) | 191.21% |
| Profit before tax | 1,504,978 | 159,034 | 846.32% |
| Taxation | (829,642) | (544,323) | 52.42% |
| Net profit for the period | 675,336 | (385,289) | – |
| Basic and diluted earnings/ (loss) per share | 4.73 | (2.70) | – |
HCAR and KSE-100 YTD Performance
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Posted on: 2023-11-22T12:57:45+05:00
