Karachi, May 26, 2022 (PPI-OT): HCAR: MY22 Result Review – Below expectation
HCAR announced its financial result for MY22 which posted earnings of PkR2.5bn (EPS: PkR17.58), growing 40%YoY compared to earnings of PkR1.8bn (EPS: PkR12.55) during MY21. For 4QMY22, earnings have declined by 78%YoY/56%QoQ to stand at PkR197mn (EPS: PkR1.38).
These earnings are below our expectations, mainly due to one-off item in the Selling and Distribution expenses. For 4QFY22, the Selling and Distribution expenses have clocked in at PkR615mn. This is mainly due to higher volumes and promotions for the launch of the new Civic variant.
The company has also announced a dividend of PkR7.0/sh in MY22 vs PkR4.52/sh in MY21, with the current payout ratio standing at 40% compared to 36% for last year.
Sales for the company have increased by 60%YoY in MY22 to reach PkR108.0bn while posting PkR30.1bn for 4QMY22, up 35%YoY compared to the same period last year and saw a meagre increase of 4%QoQ.
Other income has clocked in at PkR2.0bn in MY22 and PkR624mn in 4QMY22, due to higher returns on cash and ST investments.
Gross margins in this quarter are 4.5% compared to 2.7% in the last quarter owing to the increase in prices.