Karachi, May 26, 2022 (PPI-OT): Automobile Assemblers – Honda Atlas Cars (Pakistan) Limited

Earnings: Honda Atlas Cars (Pakistan) Limited (HCAR) announced its full year 2022 financial results. The company reported earnings of PKR 2.5bn or PKR 17.6/share compared to last year PKR 1.8bn or PKR 12.6/share an increase of +40%y. For the 4qFy22, reported earnings are down by 78%y to PKR 0.2bn compared to last year PKR 0.9bn.

Dividends/Payouts: Company announced final cash dividend of PKR 7.0/share compared to last year PKR 4.52/share.

Operating performance: Company’s reported net sales of PKR 108.0bn (PKR 31bn in 4qFy22; +35%y), an increase of +60%y. Gross profit margins of the company slightly deteriorated during the year, clocking in at 5.2% (4.5% for 4qFY22) compared to last year 5.6% (5.2% 4QFY21). Operating costs including administrative and selling and marketing rose by 41%y to PKR 2.2bn (PKR 0.9bn during 4qFy22; +57%y). Higher operating costs during the year reduced overall Ebit margins down to 4.1% compared to last year 4.3%. During the 4qFy22, company’s Ebit margin are down to 2.9% versus 4.4% last year same period. In addition, the company booked higher effective tax charge to the tune of 76% during the 4qFY22 compared to average of 32% in preceding 9mFy22. Nevertheless, total FY22 average effective tax rate for the company came at 41% versus last year 35%.