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

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.

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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