HCAR’s profits plunge by 78% in 1QMY24

MG News | July 25, 2023 at 12:52 PM GMT+05:00

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July 25, 2023 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) experienced a significant fall of 77.98% YoY in its profitability, clocking in its profit after tax at Rs144.96 million.

Going by the results, the company's top line shrinked by 87.53% YoY to Rs3.77bn as compared to Rs30.25bn in SPLY.

This decline is mainly due to a plunge in QoQ/YoY sales volume caused by hampered production.

The company witnessed more than 45 days of closedown in the said quarter due to supply chain concerns from import restrictions.

The cost of sales fell to Rs3.92bn in 1QMY24 as compared to Rs28.33bn in SPLY.

However, during the review period, other income surged by 71.40% YoY to stand at Rs902.69m in 1QMY24 as compared to Rs526.67m in SPLY.

On the expense side, the company observed a decrease in Distribution & marketing costs by 42.16% YoY to clock in at Rs271.92m, while the company managed to reduce its other expenses by 95.89% YoY to Rs30.98m during the review period.

The company’s finance costs rose by 2.21x YoY and stood at Rs43.68m as compared to Rs19.77m in 1QMY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs122.74m against the Rs436.04m paid in the corresponding period of last year, depicting a decrease of 71.85% YoY.

This might be attributed to the implementation of the super tax.

Unconsolidated (un-audited) Financial Results for Quarter ended 30 June, 2023
	June 23	June 22	% Change
Sales	3,770,622	30,245,857	-87.53%
Cost of sales	(3,919,002)	(28,330,433)	-86.17%
Gross Profit	(148,380)	1,915,424	-
Distribution & marketing cost	(140,028)	(242,101)	-42.16%
Administrative expenses	(271,922)	(332,608)	-18.25%
Other Income	902,686	526,665	71.40%
Other expenses	(30,984)	(753,367)	-95.89%
Finance cost	(43,677)	(19,774)	120.88%
Operating profit	267,695	1,094,239	-75.54%
Taxation	(122,738)	(436,037)	-71.85%
Net profit for the period	144,957	658,202	-77.98%
Basic and diluted earnings/ (loss) per share	1.02	4.61	-

Amount in PKR Thousand

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