Honda Atlas posts Rs1.49b profit, up 143%

Gross margins fall as steel prices, Japanese yen appreciate

KARACHI: Honda Atlas Cars Pakistan (HCAR) has posted a net profit of Rs1.49 billion in the quarter ended December 31, 2016, up an impressive 143% from Rs612 million in the same quarter of last year, according to a company notice sent to the Pakistan Stock Exchange on Thursday.

Earnings per share (EPS) rose to Rs10.45 in Oct-Dec 2016 compared with Rs4.29 in the corresponding quarter a year ago.

Honda Atlas share price increased by 0.01% on Thursday, closing at Rs780.43. KSE-100 index closed at 50,192.36, up 435 points or 0.88%.

That took profitability over the nine-month (Apr-Dec) period of 2016-17 to Rs5.2 billion or an EPS of Rs28.12, a growth of 114% against the same period of previous year.



The company recorded net revenues of Rs15.71 billion in the third quarter, which was in line with expectations, according to a research report of Arif Habib Limited.

With the company reserving over 60% of the order book for the new 10th Generation Civic, sales remained at levels similar to the previous quarter. Year-on-year comparison displayed a remarkable 50% escalation in the first nine months of the current financial year, it added.



Gross margins inched down 200 basis points to 13.9%. While the rupee-dollar parity remained stable, increase in steel prices and 5.3% appreciation of the yen against the dollar in the last quarter hit profitability of the company.

Other income depicted a 38% quarter-on-quarter growth to Rs312 million because the company continued to accumulate treasury bills and term deposits.