Honda Atlas Cars’ profits drop by 11% in nine months

January 24, 2024 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) recorded a decline of 11.09% YoY in its profits in nine months ended December 31, 2023, with the company's after-tax profits falling to Rs963.54 million [EPS: Rs6.75], compared to a profit of Rs1.08bn [EPS: Rs7.59] in the same period last year (SPLY).

Going by the results, the company's top line shrank by 58.55% YoY to Rs30.15bn as compared to Rs72.74bn in SPLY.

The cost of sales also fell by 59.41% YoY but was lesser than proportionate to sales decline, which worsened the gross profit by 45.09% YoY to Rs2.4bn in 9MMY23.

However, during the review period, other income grew by 27.37% YoY to stand at Rs2.09bn in nine months MY23 as compared to Rs1.64bn in SPLY.

On the expense side, the company observed a decrease in distribution and marketing costs by 20.99% YoY and a substantial decline in other expenses by 80.79% YoY to clock in at Rs534.79m and Rs297m respectively during the review period.

The company’s finance costs rose by 60.29% YoY and stood at Rs607.11m as compared to Rs378.77m in the review period, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs1.04bn against the Rs1.35bn paid in the corresponding period of last year, depicting a decrease of 23.20% YoY.

Amount in thousand except for EPS

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