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.
| Unconsolidated (un-audited) Financial Results for nine months ended 31 December, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 30,153,091 | 72,743,172 | -58.55% |
| Cost of sales | (27,748,684) | (68,364,399) | -59.41% |
| Gross Profit | 2,404,407 | 4,378,773 | -45.09% |
| Distribution and marketing costs | (534,786) | (676,831) | -20.99% |
| Administrative expenses | (1,052,902) | (982,751) | 7.14% |
| Other Income | 2,087,452 | 1,638,919 | 27.37% |
| Other expenses | (296,999) | (1,545,906) | -80.79% |
| Finance cost | (607,112) | (378,770) | 60.29% |
| Profit before taxation | 2,000,060 | 2,433,434 | -17.81% |
| Taxation | (1,036,516) | (1,349,696) | -23.20% |
| Net profit for the period | 963,544 | 1,083,738 | -11.09% |
| Basic earnings/ (loss) per share | 6.75 | 7.59 | – |
Amount in thousand except for EPS
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Posted on: 2024-01-24T12:51:40+05:00
