Karachi, October 23, 2023 – Atlas Honda Limited has announced a substantial increase in profit, reporting a remarkable 152 percent growth in its motorcycle business.
The company disclosed its financial results for the half-year ending September 30, 2023, through a filing with the Pakistan Stock Exchange (PSX).
Atlas Honda reported a profit after tax of Rs 1.96 billion for the first half of the fiscal year 2023, compared to Rs 777 million in the corresponding period of the previous year. This surge in profits translates to earnings per share (EPS) of Rs 15.77 for the first half of 2023, in contrast to Rs 6.26 during the same period of the previous fiscal year.
During a board of directors meeting on October 23, 2023, the company approved an interim cash dividend for the half-year ending September 30, 2023, at Rs 17 per share, representing a 170 percent dividend.
The company’s gross profit for the period under review was declared at Rs 2.42 billion, as total sales increased to Rs 38.56 billion during the same period. Administrative expenses rose to Rs 785 million for the first half of 2023, up from Rs 628 million in the corresponding period of the previous year.
Analysts have attributed Atlas Honda’s surge in profit to a sharp increase in prices during the period, largely due to the depreciation of the Pakistani Rupee (PKR). Additionally, they suggest that higher petroleum prices may have motivated consumers to prefer two-wheeler vehicles to reduce fuel consumption.
The notable increase in profit reflects the dynamics of the motorcycle industry in Pakistan, where factors such as exchange rates, fuel prices, and consumer preferences can significantly impact the performance of motorcycle manufacturers like Atlas Honda.
