Atlas Honda Reports a 75.2% Profit Surge

Atlas Honda Limited (ATLH) has achieved a remarkable milestone by reporting a 75.2% year-on-year (YoY) increase in its profit after tax, reaching an impressive Rs. 10.65 billion for the nine months ending December 31, 2024. This significant rise showcases the company’s exceptional financial performance compared to Rs. 6.08 billion in the same period last year.

Key Financial Highlights

1. Revenue Growth:
   Atlas Honda’s revenue surged by 27.2%, rising to Rs. 146.86 billion compared to Rs. 115.42 billion in the previous year. The increase in sales has been a driving factor behind the company’s profitability, reflecting strong market demand and operational excellence.
2. Gross Profit & Margins:
   The company’s gross profit soared by 79.1%, reaching Rs. 14.01 billion from Rs. 7.82 billion last year. Enhanced operational efficiency and higher sales volumes contributed to the improvement in gross profit margins.
3. Cost of Sales & Expenses:
   • The cost of sales rose by 23.5%, totaling Rs. 132.84 billion.
   • Sales and marketing expenses increased by 22.5% to Rs. 2.84 billion, while administrative expenses grew by 24.1% to Rs. 799.71 million.
   • Despite these increases, Atlas Honda managed to sustain profitability due to its robust revenue growth.
4. Other Income & Associate Profit:
   The company witnessed an 18.2% rise in other income, which amounted to Rs. 7.38 billion. Additionally, the share of profit from an associate saw an extraordinary growth of 408.4%, reaching Rs. 41.43 million compared to Rs. 8.15 million last year.
5. Finance Costs & Taxes:
   Finance costs rose by 55.7%, driven by higher interest rates. However, the strong revenue performance helped offset these costs. Atlas Honda paid Rs. 6.10 billion in taxes, a 57.2% increase from the Rs. 3.88 billion paid last year.

Dividend Announcement

The Board of Directors has proposed a dividend payout, reflecting the company’s commitment to rewarding its shareholders amidst its impressive financial achievements.

Market Leadership

Atlas Honda’s strong growth and profitability further cement its position as a market leader in Pakistan’s motorcycle industry. The company’s ability to maintain a balance between operational efficiency, cost management, and revenue generation underscores its robust business strategy.

Atlas Honda’s outstanding financial performance demonstrates its resilience and adaptability in a competitive market. With rising revenue, improved profit margins, and strategic initiatives, the company continues to set benchmarks for success in the motorcycle industry.