HACL yearly profit jumps 163pc

KARACHI: Honda Atlas Cars Ltd (HACL) on Tuesday announced its net profit for the year ended March 31, 2021, surged 163 percent to Rs1.79 billion compared to Rs681.75 million recorded in the previous year.

The carmaker in a statement said the earnings per share (EPS) for the year under review clocked in at Rs12.56 as against Rs4.77 in the previous year. Company also declared a final cash dividend of Rs4.52/share compared with dividend of Rs1.0/share in the previous year.

Honda Atlas Cars sales revenues increased 22.3 percent to Rs67.36 billion during the year, compared with Rs55.04 billion in the previous year.

“Topline of the company improved due to higher vehicle prices and increase in sales volumes by 7 percent to 24,027 units compared to 22,407 in the previous year,” an analyst at Arif Habib Limited said. Pertinently, margins dropped to 5.18 percent as against 5.62 percent previously.

“Despite appreciation of rupee, decline in margins came on account of higher duties and surge in prices of imported raw materials,” the analyst added.

Moreover, other income recorded a surge of 21 percent to Rs517 million due to an increase in short-term investments and cash and bank balances.