Honda Atlas Cars posted a net profit of Rs 2.4 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 Rs 16.97 from an EPS of Rs 11.03 in the period under review.
The company’s performance was even better in the third quarter (Oct-Dec) in which its net earnings jumped to Rs 611 million, up 71% from Rs 358 million in the same quarter in year 2014-15. Earnings per share (EPS) in the third quarter jumped to Rs 4.29 compared to an EPS of Rs 2.51 in the third quarter of 2014-15.
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Revenue of the company increased by 17% year on year to Rs 6.9 billion in third quarter of fiscal 2015-16 (3Q2016).
Topline Securities report said:
“The result was slightly above expectations. 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.”
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 favorable 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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