HCAR's profit surges over 9x in MY24, announces Rs6.5 DPS

MG News | May 27, 2024 at 12:25 PM GMT+05:00

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May 27, 2024 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) recorded an increase of 797.2% YoY in its profits for year ended March 2024, with the company's after-tax profits rising to Rs2.33 billion [EPS: Rs16.34] despite significantly lower sales.

That compares with a profit of Rs260.14 million [EPS: Rs1.82] earned in the previous year.

Along with the results, the car manufacturer announced a final cash dividend of Rs6.5 per share.

Going by the results, the company's revenue fell 42.1% YoY to Rs55.07bn as compared to Rs95.09bn in the previous year.

The cost of sales also fell by 42.5% YoY but was lesser than proportionate to sales decline, which worsened the gross profit by 37.1% YoY to Rs4.51bn in MY 2024.

The gross margins, however, improved to 8.19% as compared to 7.53% in SPLY.

During the period under review, other income deflated by 3.0% YoY to stand at Rs2.25bn in MY 2024 as compared to Rs2.32bn in SPLY.

On the expense side, the company's distribution and marketing costs rose 1.4% YoY to Rs914.88m, while administrative expenses rose 12.0% YoY to Rs1.48bn.

On the other hand, the company's other expenses plunged 92.0% YoY to just Rs393.64m.

Meanwhile, HCAR's finance cost surged by 252.2% YoY and stood at Rs1.22bn as compared to Rs346.14m in the previous year, mainly due to higher interest rates.

The company paid a notably lower tax worth Rs418.85m against the Rs1.72bn paid in the corresponding period of last year, a decrease of 75.7% YoY.

Unconsolidated (un-audited) Financial Results for year ended March 31, 2024 (Rupees in '000)
	Mar 24	Mar 23	% Change
Sales	55,071,323	95,087,251	-42.08%
Cost of sales	(50,563,229)	(87,926,215)	-42.49%
Gross Profit/ (loss)	4,508,094	7,161,036	-37.05%
Distribution and marketing costs	(914,883)	(902,374)	1.39%
Administrative expenses	(1,479,952)	(1,321,962)	11.95%
Other Income	2,252,115	2,321,705	-3.00%
Other Expenses	(393,635)	(4,929,616)	-92.01%
Finance Cost	(1,218,996)	(346,141)	252.17%
Profit/ (loss) before taxation	2,752,743	1,982,648	38.84%
Taxation	(418,848)	(1,722,507)	-75.68%
Net profit/ (loss) for the period	2,333,895	260,141	797.17%
Basic earnings/ (loss) per share	16.34	1.82	-

Amount in thousand except for EPS

The company's shares jumped over 6.65% or Rs20.37 to Rs326.52 per share.

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