Atlas Honda Limited reported a gross profit of PKR 9.7 billion in CY23, representing a 2.15% YoY decline compared to PKR 9.9 billion in the same period last year (SPLY).
The Company’s profit for CY23 stood at PKR 5 billion (EPS: PKR 40.3), down from PKR 5.5 billion (EPS: PKR 45.03) in the previous year. The cash dividend payout remained stable at 60% in CY23.
The Company’s revenue showed a solid growth of 2.7% YoY, reaching PKR 135 billion for the year, compared to PKR 132 billion last year. Similarly, Profit Before Tax (PBT) increased to PKR 8.1 billion in CY23, a 3.6% YoY growth from PKR 7.8 billion in the same period last year.
During the year, the Company’s current liabilities increased to PKR 46 billion from PKR 25 bn in CY 22 due to royalty payments to Japan.
Similarly, the Company’s expenses for the year amounted to PKR 2.15 billion, a significant increase compared to PKR 629.26 million in the previous year. The Company experienced a growth in tax payments, with a 38.7% YoY increase to PKR 3.09 billion in CY23.
However, the total assets of the Company rose to PKR 70 billion, a significant 47.7% YoY increase compared to PKR 47 billion last year. The shareholder’s equity also grew by
The management attributed the highest level of equity in CY23, amounting to PKR 22.8 billion, to continuous investments in localization and business model reform
The sustainable margins of the Company were largely supported by increased sales over the past five years.
In terms of sustainability, the Company achieved a 2.5% reduction in water consumption per bike and a 6.4% reduction in effluents and waste per bike.
The Company acknowledged the impact of unrestrained inflation on urban consumers, which affected their purchasing power. In contrast, rural consumers benefited from their dollar-linked incomes.
The Company emphasized the challenges it faced in the sale of EV bikes, such as limited supply of lithium batteries and higher prices. The highest-selling EV bike is priced at $2000.
Looking ahead, the Company remains optimistic about solid growth driven by sustainable increase in localization. However, it anticipates an impact on profitability from the imposition of super tax in the next year. The volumetric growth is expected to remain stable in the coming calendar year.
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