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Atlas Honda’s profit soars 181%

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KARACHI:

Atlas Honda witnessed almost a two-fold surge in its after-tax profit during the six month period ended September 30, 2021.

According to a notification sent to the Pakistan Stock Exchange on Friday, the company posted a profit of Rs2.49 billion in April-September 2021, up 181% compared to Rs885 million in the same period of previous year.

In July-September 2021, the company posted a profit of Rs1.15 billion against Rs1 billion in the same quarter of previous year.

Earnings per share of the company stood at Rs9.3 during July-September 2021 as compared to Rs8.08 in the corresponding period of previous year.

During the quarter under review, the revenue of the company increased by 19% year-on-year to Rs29.06 billion.

Read Supply constraints irk Japanese firms

In comments to The Express Tribune, Al Habib Capital Markets analyst Sunny Kumar attributed jump in earnings to the increase in volumetric sales.

The company’s gross margins declined by one percentage point to 7% during July-September 2021 compared to 8% in the same quarter of previous year, he said adding that the company was unable to pass on the impact of rupee devaluation against the US dollar and inflation to end consumers.

During the quarter, sales and marketing expenses of the company increased by 20% on a year-on-year basis, which was in line with increase in sales, he said.

Kumar highlighted that the finance cost of the company increased by 17% year-on-year during the quarter under review amid higher borrowings.

Published in The Express Tribune, October 30th, 2021.

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