Honda Atlas Cars Ltd announced its 2021 financial results where it recorded Sales revenue of PKR 67.36Billion (increase by 22% YoY), on the back of higher Car sales.
The gross margin were recorded at 5.2% in the last quarter, as compared to 6.5% in the earlier quarters of the year. The average MY2021 gross margin on the other hand clocked in at 5.6% compared to 7.4% in last year. The gross margin in the last quarter was impacted due to higher global shipping/freight cost and soaring raw material prices (Steel, plastics resin, aluminum, etc) despite higher sales and a strong Rupee position. .
The distribution and marketing expense registered a massive growth to PKR 737Million in MY21. Marketing and distribution expenses may have also increased to support higher quarterly sales and to conclude the year on a strong note. The same was higher by 10% YoY increase. HCAR reported administration expense of PKR824Mn (↑11% YoY) during the year.
The company posted a financial income of PKR 116M (down by 84% YoY), on account of stable interest rates and lower borrowing requirements.
| Income Statement (PKR million) | 2021 | 2020 | Change % |
| Net Sales | 67,362 | 55,046 | 22% |
| Cost of Production | 63,586 | 50,955 | 25% |
| Gross Profit | 3,776 | 4,091 | -8% |
| Distribution Expenses | 737 | 668 | 10% |
| Administration Expenses | 824 | 739 | 11% |
| Operating Profit | 2,215 | 2,685 | -17% |
| Other Income | 918 | 639 | 44% |
| other expense | 237 | 1,049 | -77% |
| Finance Cost | 116 | 727 | -84% |
| Net Profit | 1,793 | 682 | 163% |
| EPS | 12.56 | 4.77 | 163% |
| Gross Margins% | 5.60% | 7.40% | -1.80% |
| Net Margins% | 2.70% | 1.20% | 1.40% |
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