HCAR - 3QMY24 Result review, (AKD Off the Analyst's Desk Jan 24, 2024)
HCAR - 3QMY24 Result review,
Honda Atlas Cars Limited (HCAR) announced its 3QMY24 results today where the company posted PAT of PkR143mn (EPS: PkR1.0) vs. PkR143mn (EPS: PkR4.7) in the previous quarter. The results fell below expectations, primarily due to increased financial charges.
- Company's topline amounted to PkR12.4bn, marking a decline of 11% on a quarterly basis and 46% on a yearly basis. This notable reduction is attributed to a decrease in sales volumes, with the company selling only 2,375units compared to 2,510/5,477units in 2QMY24/SPLY, respectively.
- Gross margins contracted to 8.3%, down from 10.9% in the previous quarter, primarily due to a decline in ex-factory prices at the end of October.
- Other income experienced a significant 68%QoQ decline to PkR288mn, largely due to a decrease in short-term investments to PkR3.8bn in Sept’23 from PkR10.1bn in Jun’23.
- A major deviation from expectations was observed in higher financial charges, amounting to PkR443mn (compared to our expectations of PkR26mn). This increase may possibly be due to a rise in borrowings or higher discounting of long-term trade debts.
- Overall, earnings for 9MMY24 accumulated to PkR6.7/sh compared to PkR7.6/sh in the same period last year, down 11%YoY.
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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