HCAR’s annual earnings come down by 82% owing to sharp decline in sales

MG News | June 02, 2020 at 12:57 PM GMT+05:00

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June 2, 2020 (MLN): Honda Atlas Cars (Pakistan) Limited has reported profits of Rs. 681.7 million (EPS: 4.77), nearly 82 percent lower than the figures reported in the previous year. The company also announced a final Cash Dividend for the year at Rs. 1 per share i.e. 10 %.

According to the company’s financial report issued to the PSX, the revenue declined by 42 percent owing to lower volumetric sale, whereas cost of sales dropped by nearly 42 percent on account of appreciation in local currency.

The earnings of the company were also impacted by factors that were not within its control, such as the low economic growth and higher auto financing.

Furthermore, the non-core income fell by a margin of 51 percent on the back of lower cash balance, which was impacted by the lower volumetric sale. On top of that, the finance cost depicted a 64x surge due to the increase in working capital requirements and higher borrowings.

Profit and Loss statement for the year ended March 31, 2020 ('000 Rupees)
	Mar-20	Mar-19	% Change
Sales	55,046,264	95,128,289	-42.13%
Cost of sales	(50,955,042)	(87,824,215)	-41.98%
Gross profit	4,091,222	7,304,074	-43.99%
Distribution & marketing cost	(667,901)	(931,787)	-28.32%
Administrative expenses	(738,757)	(800,040)	-7.66%
Other operating income	638,618	1,313,522	-51.38%
Other operating expenses	(1,048,538)	(1,281,007)	-18.15%
Profit from operations	2,274,644	5,604,762	-59.42%
Finance cost	(727,444)	(11,189)	6401.42%
Profit before taxation	1,547,200	5,593,573	-72.34%
Taxation	(865,448)	(1,742,460)	-50.33%
Profit after taxation	681,752	3,851,113	-82.30%
Earnings per share - basic and diluted	4.77	26.97	-82.31%

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