November 22, 2024 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) revealed its profitability, wherein the profit after tax clocked in at Rs257.74 million [EPS: Rs1.8] compared to a profit of Rs675.34m [EPS: Rs4.73] in the same period last year (SPLY).
The company experienced this profit drop despite its topline surging 18.92% to Rs16.6bn.
Part of this decline was due to the cost of sales outpacing sales growth, which resulted in a 20.0% decrease in gross profit, bringing it to Rs1.22bn in Q3 CY24.
Accordingly, the gross margins worsened to 7.4% as compared to 10.9% in SPLY.
HCAR suffered a further hit as its other income fell by 90.5% to stand at Rs84.85m as compared to Rs896.57m in SPLY.
On the expense side, the company's administration expenses rose 14.5% YoY to Rs437.92m.
On the other hand, distribution and selling expenses fell 14.6% YoY to Rs181.17m, and other operating expenses dropped 67.1% YoY to Rs66.97m.
The company’s finance cost grew by 60.9% and stood at Rs193.31m as compared to Rs120.17m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs168.71m against the Rs829.64m paid in the corresponding period of last year, depicting a fall of 79.7%.
| Unconsolidated (un-audited) Financial Results for quarter ended September 30, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Sep 24 | Sep 23 | % Change | |
| Sales | 16,596,927 | 13,956,298 | 18.92% |
| Cost of sales | (15,375,959) | (12,429,502) | 23.71% |
| Gross Profit/ (loss) | 1,220,968 | 1,526,796 | -20.03% |
| Administration expenses | (437,919) | (382,600) | 14.46% |
| Distribution and selling expenses | (181,170) | (212,117) | -14.59% |
| Other Income | 84,845 | 896,574 | -90.54% |
| Other Operating Expenses | (66,965) | (203,506) | -67.09% |
| Financial (charges) / income | (193,314) | (120,169) | 60.87% |
| Profit/ (loss) before taxation | 426,445 | 1,504,978 | -71.66% |
| Final tax / levies | (168,706) | (829,642) | -79.67% |
| Net profit/ (loss) for the period | 257,739 | 675,336 | -61.84% |
| Basic earnings/ (loss) per share | 1.80 | 4.73 | – |
Amount in thousand except for EPS
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Posted on: 2024-11-22T15:18:55+05:00
