Honda Atlas Cars Pakistan Ltd. (HCAR) has announced its profits for the financial year which ended on 31 March 2021. Compared to a profit of Rs. 681 million in the previous year, the company has reported a profit of Rs. 1.79 billion during the current year.
Honda Atlas sales during the year grew by 22.4 per cent to Rs. 67.36 billion compared to Rs. 55.04 billion recorded last year. The final cash dividend was announced which amounted to Rs. 4.52 per share. The reason for the rising revenue was a seven per cent increase in sales volume as the company sold 24,072 units during FY21, as compared to 22,417 units sold in FY20. Due to attractive auto-financing rates and the release of pent-up demand with the lower finance cost, the sales volume has bounced back which has resulted in higher profits.
Cost of Sales for the year FY21 reported at Rs. 63.58 billion, compared to 50.95 billion last year, thus showing an increase of 24.80 per cent. The resulting gross profit was Rs. 3.77 billion compared to Rs. 4.09 billion last year. Other income increased by 44 per cent to Rs. 918.48 million as compared to Rs, 638.61 million last year due to an increase in new car bookings.
Compared to 727.44 million during the last year, the financing cost of the company decreased by 84.03 per cent to Rs. 116.15 million due to lower interest rates during the period. The earnings per share recorded at Rs. 12.56 compared to Rs. 4.77 last year.
In the fourth quarter of the current financial year, the company posted a profit of Rs. 896 million which was up by 19 per cent compared to the previous quarter. The sales had increased by 29 per cent quarter-on-quarter basis which was led by a rise of 29 per cent in volumes to 8,032 units during the quarter, and 36 per cent year-on-year. The gross margin for the quarter decreased by 5.2 per cent, which is 1.3 ppts lower than the margins registered in the previous quarter due to rising prices of raw materials.
In the stock market, HCAR closed at Rs. 340.79, down by Rs. 4.40 or 1.27 per cent with a turnover of 1.62 million on Tuesday.