Honda Atlas Cars (Pakistan) Limited (HCAR) announced its financial result for MY24 on May 27, posting a PAT of PKR 2,334mn (EPS: PKR 16.34), up by 9x YoY. During 4QMY24, the net profit of the company clocked in at PKR 1,370mn (EPS: PKR 9.59) compared to net loss of  PKR 824mn (LPS: PKR 5.77) in 4QMY23. Alongside the result, the company announced a cash dividend of PKR 6.50/share.

Result Highlights       

• Net sales during MY24 clocked in at PKR 55,071mn in contrast to PKR 95,087mn in SPLY, depicting a decline of 42% YoY primarily due to reduced customer purchasing power. On a quarterly basis, the topline went up by 12% YoY to record at PKR 24.9bn. On a sequential basis, the revenue swelled up by 101% QoQ amid surge in sales volumes by 112% QoQ to 5,044 units vis-à-vis 2,375 units, which is attributable to the new-year effect.
• During MY24 gross margin arrived at 8.2%, in contrast to 7.5% during SPLY mainly due to a stable PKR-USD parity. On a quarterly basis, the gross margins settled at 8.4% during 4QMY24 compared to 12.5% in SPLY, amid cost-push inflationary pressures and currency depreciation.
• Other income declined by 3% YoY to clock in at PKR 2,252mn in MY24, which is mainly because of decrease in cash and cash equivalent. While, on quarterly basis, it plummeted by 76% YoY  due to the same aforementioned reason.
• Other expenses declined by 92% YoY to clock in at PKR 394mn in MY24, primarily due to the absence of significant exchange losses.
• The company booked effective taxation at 15% in MY24 vis-à-vis  87% in SPLY.

 Courtesy – AHL Research