LAHORE - Honda Atlas Cars (HCAR) has announced its financial results for 3Q2016, posting earnings of Rs612 million (EPS Rs4.3) against Rs358m (EPS Rs2.5) in the same period last year.

Revenue of the company increased by 17% YoY to Rs6.9b in 3Q2016. Experts attributed this improvement to 20% YoY growth in volumes to 4,426 units and 1.0-1.5% increase in car price effective from Dec 1, 2015. It is important to note that HCAR managed to maintain its volumes in spite of the launch of Toyota Corolla new model by Indus Motor (INDU).

Gross margins of the company improved by 412bps to 15.4% in 3Q2016. Experts attributed this improvement to 22% YoY decline in international steel prices and favorable exchange rate of Pak Rupee (PKR) against both US dollar (US$) and Japanese Yen (JPY). Thus, gross profit surged by 59% to Rs1.1b in 3Q2016 compared to Rs664m in 3Q2015. On-quarter-on-quarter basis, revenue of the company witnessed decline of 29% owing to year-end phenomenon and muted volumes of Honda Civic in anticipation of its new model launch in July 2016.

Bottom-line earnings of the company in 3Q2016 decline by 16% QoQ to Rs612mn (EPS Rs4.2) mainly due to volumetric decline.a