FLASHNEWS:

IGI Securities Limited – Flash Note (January 26, 2023)

Karachi, January 26, 2023 (PPI-OT): Automobile Assemblers – Honda Atlas Cars (Pakistan) Limited

Earnings: Honda Atlas Cars (Pakistan) Limited (HCAR) announced its financial result for the 3q’23,
whereby company reported a profit of PKR 0.8bn or PKR 5.7/share compared to last year profit of PKR
0.2bn or PKR 1.4/share. This takes total earnings for the 9m’23 to 1.1bn (PKR 7.6/share) compared to last
year’s 1.6bn (PKR 11.1/share).

Dividend/Payout: The Company did not announced any cash dividend.

Operating Performance: For the quarter, Company’s revenues dropped by 25%y to PKR 22.9bn, amid
slowdown in sales volume (5.4k units’ vs 10.4k units). On sequential basis, revenues are up by 17%q,
taking in effect of rise in retail prices and subsequently pushing gross margins to 8% (3% previous quarter
and 5% last year same period). In addition to this, bottom-line got a lift from increased operating profit
margins 5.4% (0.7% pr. quarter) and normalized effective tax rate of 31% (4x pr. quarter).