Business

Honda Atlas rakes in Rs1.42b profit, but below expectations

EPS stands at Rs9.92 for Oct-Dec period of 2017

Our Correspondent January 24, 2018

A man walks past Honda Motor Co. cars at a showroom in Tokyo January 30, 2008. PHOTO: REUTERS

KARACHI: Honda Atlas Cars (Pakistan) Limited (HCAR) announced a net profit of Rs1.42 billion in the quarter ended December 31, 2017, down 5% when compared with Rs1.49 billion it earned in the same period of the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.

Earnings per share (EPS) amounted to Rs9.92 compared with an EPS of Rs10.45 in the three-month period.

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This takes the nine-month (April-December) profit to Rs5.12 billion (EPS Rs35.86), up 28% compared with Rs4.01 billion (EPS Rs28.12) last year. The result was below street consensus and it reflected in the company’s share price that fell to Rs531.34, a decrease of Rs27.67.

The company’s net sales jumped by 39% year-on-year to Rs21.8 billion during the period owing to an increase of 43% year-on-year in sales volumes. Hence, cumulative net sales for the nine-month period of fiscal year 2017-18 stood at Rs65.7 billion, up by 58% year-on-year.

Gross margins during the quarter compressed by 346 basis points year-on-year to 10.45%, owing to multiple factors like high steel prices and the rupee deprecation against the dollar.

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Distribution costs leaped up by 49% year-on-year to Rs157 million compared with Rs106 million in the same period last year. However, other income supported earnings by posting a growth of 48% year-on-year to Rs460 million.

Effective tax rate stood at 33% during the third quarter compared with 30% in the same period last year.

Published in The Express Tribune, January 24^th, 2018.

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