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Atlas Honda records 49 per cent increase in quarterly earnings
- Web Desk
- Oct 30, 2024
ISLAMABAD: Atlas Honda Limited, the manufacturer of Honda bikes in Pakistan, listed on the Pakistan Stock Exchange as ATLH, reported a 49.4 per cent year-on-year increase in quarterly earnings.
The company’s profit after tax rose to Rs4.97 billion (Earnings Per Share: Rs25.33), compared to Rs3.33 billion (EPS: Rs15.77) in the same period last year.
As a result of this financial improvement, the Board of Directors has recommended a cash dividend of Rs32 per share, representing a 320 per cent payout.
The company’s sales grew by 18.1 per cent, reaching Rs45.52 billion, compared to Rs38.56 billion in the same period last year.
While the cost of sales also increased, the growth in sales outpaced it, leading to a 49.4 per cent increase in gross profit which reached Rs3.65 billion in Q3 CY24. Gross margins improved to 8.0 per cent up from 6.3 per cent in the corresponding period last year.
Other income rose by 24.9 per cent, standing at Rs2.79 billion in Q3 CY24, compared to Rs2.24 billion a year earlier. On the expense side administrative costs increased by 32.9 per cent to Rs326.48 million, and distribution and selling expenses grew by 20.6 per cent to Rs971.85 million.
However other operating expenses decreased by 43.2 per cent to Rs98.78 million.
Finance costs increased by 40.9 per cent, reaching Rs27.57 million, compared to Rs19.56 million last year, mainly due to higher interest rates. The company paid lower taxes, amounting to Rs68.86 million, down 38.6 per cent from Rs112.2 million in the same period last year.
Overall, the rise in sales and additional income more than offset higher expenses and finance costs, resulting in a strong financial performance.
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