News Guides Comparisons Specs & Price

Honda Pakistan’s Annual Profits Up 9x Despite Big Dip in Sales

Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) announced its financial result for MY24 today. posting a profit after tax of Rs. 2.334 billion, up by 9x year-on-year (YoY).

During 4QMY24, the net profit of the company clocked in at Rs. 1.370 billion compared to a net loss of Rs. 824 million in 4QMY23.

Along with the result, the company announced a cash dividend of Rs. 6.50 per share.

Net sales during MY24 clocked in at Rs. 55 billion in contrast to Rs. 95 billion in SPLY, depicting a decline of 42 percent YoY primarily due to reduced customer purchasing power, Arif Habib Limited (AHL) said in a review of the company’s results. On a quarterly basis, the topline went up by 12 percent YoY to record at Rs. 24.9 billion.

On a sequential basis, the revenue swelled up by 101 percent QoQ amid a surge in sales volumes by 112 percent QoQ to 5,044 units vis-à-vis 2,375 units, which is attributable to the new-year effect.

During MY24, the gross margin arrived at 8.2 percent, in contrast to 7.5 percent during SPLY mainly due to a stable PKR-USD parity. On a quarterly basis, the gross margins settled at 8.4 percent during 4QMY24 compared to 12.5 percent in SPLY, amid cost-push inflationary pressures and currency depreciation.

Other income declined by 3 percent YoY to clock in at Rs. 2.25 billion in MY24, which is mainly because of a decrease in cash and cash equivalent. While, on a quarterly basis, it plummeted by 76 percent YoY due to the same aforementioned reason.

Other expenses declined by 92 percent YoY to clock in at Rs. 394 million in MY24, primarily due to the absence of significant exchange losses.

The company booked effective taxation at 15 percent in MY24 vis-à-vis 87 percent in SPLY.

The carmaker posted earnings per share (EPS) of Rs. 16.34 in MY24 compared to an EPS of Rs. 1.82 in the same period last year.

HCAR’s scrip at the bourse closed at Rs. 323.34, up 5.62 percent or Rs. 17.19 with a turnover of 2.67 million shares on Monday.

Get Alerts

Follow ProPakistani to get latest news and updates.

ProPakistani Community

Join the groups below to get latest news and updates.