KARACHI: Honda Atlas Cars has posted an impressive net profit of Rs1.5 billion in the quarter ended September 30, 2016, up 107% compared with Rs726 million in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share improved to Rs10.32 in the period under review compared to Rs5.08 in the corresponding period of last year. The results were in line with expectations, commented Topline Securities.
Honda Atlas Cars stock closed down 1% at Rs578.99 at the PSX on Tuesday. The benchmark KSE 100-share index closed at 42,292, down 233 points or 0.55%.
The company’s revenue showed an increase of 60% year-on-year at Rs15.5 billion in the Jul-Sept quarter. This can be attributed to robust sales volumes standing at 8,059 units, a 30% growth compared to the same quarter of last year.
There was a change in the sales mix between Honda Civic and Honda City, with the former the higher-priced brand capturing a greater share in sales owing to better reception among consumers after the launch of 10th generation model.
Gross profit surged 90% YoY to Rs2.5 billion while gross margins swelled to 16.2%, expanding 2.5 percentage points. The margin expansion can be attributed to higher contribution by Civic to the overall sales mix and a stable outlook of the rupee against the dollar (more than 80% of the company’s foreign exposure was denominated in dollars).
Other operating income clocked in at Rs226 million in the third quarter of calendar year 2016 (3QCY16) compared with Rs57 million in the same period last year. This significant boost was due to increased customer advances on the back of healthy bookings for the new Civic.
Effective tax rate during the quarter stood at 36% compared to 33% during the same period of previous year.
On a sequential basis, net revenues grew by 47% quarter-on-quarter due to robust sales volume for the aforementioned reasons. Gross profits posted a gain of 55% quarter-on-quarter, while margins expanded by 80 basis points.
In the April-September period, net sales of the company rose by 24% YoY to Rs26 billion. Sales volume during the period stood at 15,243 units compared with 13,401 last year, growing by 14%.
Courtesy : Express Tribune