HINO quarterly profit soars to Rs72.4m on strong sales growth

November 27, 2024 (MLN): HinoPak Motors Limited (PSX: HINO) reported a significant increase in its earnings, with the profit after tax for the quarter ended September 30, 2024, rising to Rs72.44 million (EPS: Rs 2.92), compared to a modest bottom line of Rs1.64m (EPS: Rs 0.07) in the same period last year (SPLY).

The company's top line grew by 41.2%, reaching Rs2.7bn, up from Rs1.91bn in the SPLY.

Although the cost of sales increased by 36.8%, the gross profit improved significantly by 74.9%, reaching Rs 390.13 million in Q3 CY24, as sales grew at a greater rate.

Accordingly, the gross margins improved to 14.4% as compared to 11.6% in SPLY.

During the period under review, other income shrank 61.1% to stand at Rs13.45m in Q3 CY24 as compared to Rs34.53m in SPLY.

On the expense side, the company's administration expenses fell 5.2% YoY to Rs111.74m and distribution and selling expenses declined 2% YoY to Rs99.23m.

The company’s finance cost soared by 844.9% and stood at Rs99.05m as compared to Rs10.48m in SPLY, mainly due to higher interest rates.

Nonetheless, on the back of robust sales and falling expenses the company managed to book a significantly higher proift.

On the tax front, the company paid a lower tax worth Rs21.12m against the Rs26.52m paid in the corresponding period of last year, depicting a fall of 20.4%.

Amount in thousand except for EPS

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