Atlas Honda Sees Huge 75% Profit Growth in Nine Months

Atlas Honda Limited (ATLH) has reported a remarkable 75.2% increase in its profit after tax for the nine months ending December 31, 2024, reaching Rs. 10.65 billion. This is a significant rise from Rs. 6.08 billion in the same period last year, highlighting the company’s strong financial performance.

Strong Sales and Profit Growth

The company’s revenue grew by 27.2%, reaching Rs. 146.86 billion compared to Rs. 115.42 billion last year. This increase in sales also led to a 79.1% rise in gross profit, which reached Rs. 14.01 billion, up from Rs. 7.82 billion last year. As a result, Atlas Honda’s gross profit margin improved, showing better efficiency in operations and higher sales.

Despite a 23.5% rise in the cost of sales (Rs. 132.84 billion), Atlas Honda’s revenue growth outpaced these expenses, leading to higher profitability.

Financial Factors and Expenses

The company’s operating expenses also increased, with sales and marketing costs rising by 22.5% to Rs. 2.84 billion, and administrative expenses growing by 24.1% to Rs. 799.71 million. However, these were offset by an 18.2% increase in other income, which reached Rs. 7.38 billion.

A significant increase in profit from an associate (408.4%), which reached Rs. 41.43 million, also boosted overall earnings. Furthermore, other operating expenses decreased by 11.7% to Rs. 662.86 million.

Although finance costs rose by 55.7% due to higher interest rates, Atlas Honda’s strong sales and additional income helped cover these extra expenses.

Tax and Dividend

The company paid Rs. 6.10 billion in taxes, a 57.2% increase from Rs. 3.88 billion last year. Given its impressive performance, the Board of Directors has proposed a dividend payout, reinforcing Atlas Honda’s strong position in the market.

Conclusion

With continued growth, strong profitability, and a solid financial foundation, Atlas Honda is achieving impressive results and securing its leadership position in the motorcycle industry. The company’s ability to increase revenue, manage costs effectively, and maintain strong operational performance highlights its potential for future success. Atlas Honda’s market position continues to strengthen, making it a key player in the industry.