According to the data released by PAMA, Honda sold 3,415 Civic and City models, while in the month of September the company sold 2,769 vehicles. It means that Honda has sold 646 excess vehicles in October—meaning the sale went up by 23.3 percent in the month of October 2017. Moreover, Honda sold 1,091 BR-Vs in October and 660 in September 2017.
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And now the 2nd quarterly earnings of the ongoing fiscal Year of Honda is out, the company sent a note to PSX (Pakistan Stock Exchange) in this regard and according to the data the company has made a staggering PKR 1.62bn while it made PKR 1.47bn in the same period last year—in simple terms the earning of the company has risen significantly in numbers. It is a 10 percent increase on YoY basis. Revealed data shows that EPS (Earnings Per Share) in 2nd quarterly was PKR 11.33 and in the same period last year, it was PKR 10.32.
The Flash Note of IGI Securities is given below:
HCAR: High cost of goods cripples quarterly margins to 12%, resulting in earnings of PKR 11.33/share (+10%YoY) for 2QFY18
Honda Atlas Cars (Pakistan) Limited (HCAR) announced its financial results for 2QFY18 with earnings clocking in at PKR 1.62bn (EPS: PKR 11.33) up by +10%YoY as compared to PKR 1.47bn (EPS PKR 10.32) in the same period last year. This takes earnings for 1HFY18 to PKR3.7bn (EPS: PKR 25.9) at a growth level of +59%YoY.
Overall net sales jumped by +48%YoY to PKR 22.8bn during the period supported by peak sales witnessed during the quarter. As a result, cumulative net sales for the 1HFY18 now stand at PKR 43.9bn, up by +69%YoY.
Gross margins during the quarter stroked at 12%, down by 400bps YoY owing to multiple factors: high steel prices, high inventory booked during the period (~136 units of City and Civic) and a possible loss in foreign exchange hedging.
Distribution costs leaped up by +43%YoY to PKR193mn as compared to PKR135mn in the same period last year. However, other income supported company’s earnings by posting a growth of +116%YoY to PKR487mn possibly due to advance payments made by the customers for the new face-lift model of City.
Effective tax rate stood at 38%, during 2QFY18 compared to 36% in the same period last year.
Source: IGI Securities
