Karachi July 30 2022: Atlas Honda Limited reported highest ever profit for single quarter as profit after tax recorded at Rs. 1,502.5 million, an increase of 13%, according to company filling to the exchange.
"Atlas Honda Limited remains committed to deliver on its long-term objectives of sustainable growth and value creation." says Saquib H.Shirazi company Chief Executive Officer.
Accordingly, it managed to achieve encouraging financial results. The Company has posted an all-time high turnover of Rs. 37.7 billion for the first quarter, which is 23% higher as compared to the corresponding quarter. This positive performance is due to strong volume growth and better sales mix.
Gross Profit (GP) for the quarter under review amounted to Rs. 2.6 billion, 9.7% higher compared to Rs. 2.4 billion of corresponding period. However, GP percentage experienced a decrease from 7.8% of the corresponding period to around 7.0%, owing to increase in raw material prices, rising energy cost and depreciation of Pak Rupee against US dollar with a less than commensurate increase in selling prices.
Sales and marketing expenses rose to Rs. 642.3 million an increase of 18% compared to corresponding period, which is attributable to higher volumes, inflation, spending on promotional campaigns and communication activities to support the core business. Administrative expenses registered an increase of 18% over the corresponding period primarily due to increase in personnel cost and effects of general inflation.
Other operating income, net of financial cost at Rs. 758.5 million is an encouraging 85.81% higher than the corresponding period. This is on account of efficient treasury operations and increase in policy rate.
An impressive topline resulted in the achievement of highest ever profit for single quarter as profit after tax recorded at Rs. 1,502.5 million, an increase of 13%. Consequently, the Company has achieved Earnings per Share (EPS) of Rs. 12.11 per share as against Rs. 10.75 per share for the corresponding period last year.
The economy, over the years, has shown strong resilience despite unexpected volatility and uncertainty. The macro-economic outlook seems challenging on account of rising inflation, fiscal slippages and drying up of financial inflows. Moving forward, it is essential to sustain the reform momentum and focus on policies for securing stability and promoting sustainable growth. Macroeconomic adjustment measures, specifically fiscal consolidation to complement the ongoing monetary tightening and exports, will help relieve pressure on PKR. Accordingly, there is a need to strike an appropriate balance between supporting the economy, ensuring debt sustainability and advancing structural reforms while maintaining social cohesion. As the economy returns to full capacity and recovery becomes durable, the two-wheeler segment is expected to resume its growth momentum.
While the macroeconomic situation undergoes a re-alignment, the Company remains confident in continuing its journey of sustained long-term growth. The Company is wellpoised and has demonstrated its ability to avail new opportunities and handle adversity with an aim to keep building a long term business proposition that increases stakeholder value. In this regard, the “Atlas Way” and “Atlas Systems” continue to remain the corner stone of our business philosophy.
Atlas Honda Limited was incorporated as a public limited company on October 16, 1962 under the Companies Act, 1913 (now the Companies Act, 2017). The Company is principally engaged in progressive manufacturing and marketing of motorcycles and spare parts. The Company is a subsidiary of Shirazi Investments (Private) Limited, which holds 52.43% of issued, subscribed and paid-up capital of the Company as at March 31, 2021.