Karachi: Atlas Honda Limited reported an improved financial performance for the fiscal year April 2023 to March 2024, with significant gains in profitability and market capitalization, despite an overall downturn in the auto industry. The performance stands out against a backdrop of economic slowdown and challenging market conditions.

The company's total units produced slightly decreased by 13% from the previous fiscal year, down to 966,768 from 1,106,166. Sales mirrored this decline, falling by 14% to 960,400 units. Despite the reduction in volume, revenue increased, highlighting a better sales mix and effective cost management strategies.

According to information available from the Pakistan Stock Exchange (PSX), gross profit for the period climbed 26%, reaching Rs. 12,227 million up from Rs. 9,672 million in the previous year, reflecting an improved gross margin of 7.7% compared to 7.1%. Profit before tax nearly doubled, surging 94% to Rs. 15,738 million, which significantly boosted the company’s profitability ratios.

Earnings per share also saw a notable increase, doubling from Rs. 40.33 to Rs. 78.24. However, the cash dividend payout remained steady at 60%, indicating a consistent return to shareholders amidst growth.

The company’s balance sheet strengthened with total assets rising by 8% to Rs. 75,944 million. Shareholders’ equity saw a significant rise of 26%, amounting to Rs. 28,768 million.

The stock performance of Atlas Honda reflected these strong results, with the price per share increasing by 46% to Rs. 392.3. Market capitalization followed suit, growing by 38% to Rs. 48.60 billion.

While Atlas Honda navigated through the fiscal year with notable successes, the broader auto industry faced contraction due to import restrictions, inflationary pressures, and a general economic slowdown, underscoring the company’s resilience in a challenging market environment.