Honda Atlas Cars Pakistan has reported a 163% surge in profit to Rs1.79 billion for the year ended March 31, 2021 on back of increase in car sales.
The company had announced an after-tax profit of Rs681.7 million in the same period of the previous year, according to notice sent to the Pakistan Stock Exchange on Tuesday.
Earnings per share jumped to Rs12.56 in the period under review from Rs4.77 in the previous year. The company board also recommended a final cash dividend of Rs4.52 (45.2%) per share for the year ended March 31, 2021, as compared to with Re1 per share (10%) declared last year.
Sales of the company were up 22% to Rs67.4 billion in the period under review due to increase in car sales.
“Topline of the company increased by 22% year-on-year during ME21 due to higher vehicle prices and increase in sales volumes by 7% year-on-year to 24,027 units compared to 22,407 units in ME20,” according to an AHL Research report. On the other hand, gross profit registered a decline “on account of higher duties and surge in prices of imported raw materials”, the report added.
Other income went up by 43.8% to Rs918.5 million from Rs638.6 million in the year ended March 2020. The uptick under this head was seen on back of increase in short-term investments and cash and bank balances. Meanwhile, finance cost dipped to Rs116.1 million in the period under review, down 84% from Rs727.4 million in the previous year.
Share price of Honda Atlas was down Rs4.40 or 1.27% to Rs340.79 with a volume of 1.6 million shares.
Published in The Express Tribune, May 26th, 2021.