Honda Atlas announces Rs2.4 billion profit

KARACHI: Honda Atlas Cars posted a net profit of Rs2.4 billion in the first nine months (Apr-Dec) of 2015-16, up 53% from Rs1.6 billion in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) increased to Rs16.97 from an EPS of Rs11.03 in the period under review.

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The company’s performance was even better in the third quarter (Oct-Dec) in which its net earnings jumped to Rs611 million, up 71% from Rs358 million in the same quarter in year 2014-15.

Earnings per share (EPS) in the third quarter jumped to Rs4.29 compared to an EPS of Rs2.51 in the third quarter of 2014-15.

“The result was slightly above expectations,” Topline Securities commented on the third quarterly results.

On Friday, PSX 100-Index closed on 30,949, up 197 points or 0.64%. Better than expected results in the third quarter helped the share price of Honda Atlas Cars to close at Rs249 on PSX 100-Index, up 2.2%.

The revenue of the company increased by 17% year on year to Rs6.9 billion in third quarter of fiscal 2015-16 (3Q2016).

“We attribute this improvement to 20% year on year growth in volumes to 4,426 units and 1-1.5% increase in car price effective from December 1, 2015,” the report said.

Gross margins of the company improved by 412 basis points (bps) to 15.4% in the 3Q2016. This improvement can be attributed to 22% year on year decline in international steel prices and favourable exchange rate of Pakistan rupee against both the dollar and Japanese yen. Thus, gross profit surged by 59% to Rs1.1 billion in 3Q2016 compared to Rs664 million in previous fiscal year.

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