Honda Atlas announces Rs2.4 billion profit

Japanese carmaker registers 53% increase in earnings during Apr-Dec period

KARACHI:

Honda Atlas Cars posted a net profit of Rs2.4 billion in the first nine months (Apr-Dec) of 2015-16, up 53% from Rs1.6 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs16.97 from an EPS of Rs11.03 in the period under review.



The company’s performance was even better in the third quarter (Oct-Dec) in which its net earnings jumped to Rs611 million, up 71% from Rs358 million in the same quarter in year 2014-15.

Earnings per share (EPS) in the third quarter jumped to Rs4.29 compared to an EPS of Rs2.51 in the third quarter of 2014-15.

“The result was slightly above expectations,” Topline Securities commented on the third quarterly results.

On Friday, PSX 100-Index closed on 30,949, up 197 points or 0.64%. Better than expected results in the third quarter helped the share price of Honda Atlas Cars to close at Rs249 on PSX 100-Index, up 2.2%.

The revenue of the company increased by 17% year on year to Rs6.9 billion in third quarter of fiscal 2015-16 (3Q2016).

“We attribute this improvement to 20% year on year growth in volumes to 4,426 units and 1-1.5% increase in car price effective from December 1, 2015,” the report said.



Gross margins of the company improved by 412 basis points (bps) to 15.4% in the 3Q2016. This improvement can be attributed to 22% year on year decline in international steel prices and favourable exchange rate of Pakistan rupee against both the dollar and Japanese yen. Thus, gross profit surged by 59% to Rs1.1 billion in 3Q2016 compared to Rs664 million in previous fiscal year.

Published in The Express Tribune, January 23^rd, 2016.

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