ATLAS HONDA LIMITED HalfYearly Report September 30,
Table of Contents
Company Information | 2 |
Chairman's Review (English) | 4 |
Chairman's Review (Urdu) | 7 |
Independent Auditor's Review Report to the Members | 8 |
Condensed Interim Statement of Financial Position | 9 |
Condensed Interim Statement of Profit or Loss and Other Comprehensive Income | 10 |
Condensed Interim Statement of Changes in Equity | 11 |
Condensed Interim Statement of Cash Flows | 12 |
Notes to the Condensed Interim Financial Statements | 13 |
Company Information
Board of Directors
Aamir H. Shirazi
Chairman
Sanaullah Qureshi
Director
Abid Naqvi
Director
Mashmooma Zehra Majeed
Director
Susumu Morisawa
Director
Shunsuke Miyazaki
Director
Kazushi Yamanaka
Director
Saquib H. Shirazi
Chief Executive Offiicer
Maheen Fatima
Company Secretary
Audit Committee
Abid Naqvi
Chairman
Sanaullah Qureshi
Member
Mashmooma Zehra Majeed
Member
Muhammad Asim
Head of Internal Audit
Maheen Fatima
Secretary
Human Resource &
Remuneration Committee
Abid Naqvi
Chairman
Sanaullah Qureshi
Member
Saquib H. Shirazi
Member
Tahir Nazir
Secretary
Management
Saquib H. Shirazi
Chief Executive Offiicer
Afaq Ahmed
Vice President Marketing
Shunsuke Miyazaki
Vice President Technical
Kazushi Yamanaka
General Manager Technical
Kashif Yasin
Chief Financial Offiicer
Faisal Mahmud
General Manager New Model Center
Hassan Mushtaq Cheema
General Manager Production, Planning & Control
Muhammad Ammar
General Manager Engineering & Projects
Muhammad Rashad Rashid
General Manager Quality Assurance
Muhammad Zafar Iqbal
General Manager After Sales
Mujahid-ul-Mulk Butt
General Manager Sales
Rashid Ahmed
General Manager Commercial & Planning
Syed Tanvir Hyder
General Manager Supply Chain & Systems
Tahir Nazir
General Manager Human
Resources & Administration
Zia Ul Hassan Khan
General Manager Plants
02 Half Yearly Report September 2022
Company Information
Auditor
Shinewing Hameed Chaudhri & Co. Chartered Accountants
Legal Advisor
Mohsin Tayebaly & Co.
Tax Advisor
EY Ford Rhodes,
Chartered Accountants
Shares Registrar
Hameed Majeed Associates (Pvt.) Limited
H. M. House, 7-Bank Square,
Shahrah-e-Quaid-e-Azam, Lahore
Tel: (92-42)37235081-82
Fax: (92-42) 37358817
Bankers
Allied Bank Limited
Askari Bank Limited
Bank Al-Habib Limited
Bank Alfalah Limited
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited
Khushali Bank Limited
MCB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
Standard Chartered Bank (Pakistan) Limited United Bank Limited
Registered Office
1-McLeod Road, Lahore-54000
Tel: (92-42)37225015-17,37233515-17
Fax: (92-42) 37233518, 37351119
E-mail: ahl@atlas.com.pk
Website: www.atlashonda.com.pk
Factories
F-36, Estate Avenue, S.I.T.E., Karachi-75730
UAN: (92-21)111-111-245
Tel: (92-21)32575561-65
Fax: (92-21) 32563758
26-27 KM, Lahore-Sheikhupura Road,
Sheikhupura-39321
Tel: (92-56)3406501-8
Fax: (92-56) 3406009
Branch Offices &
Customer Contact Centre
Azmat Wasti Road, Multan Tel: (92-61)4570413-14(92-61)111-112-411 Fax: (92-61) 4541690
Islamabad Corporate Center,
Plot No. 784/785, Golra Road, Islamabad
Tel: (92-51)5495921-7
Fax: (92-51) 5475928
Makhdoom Altaf Road, West Sadiq Canal
Bank, Near City School, Rahimyar Khan
Tel: (068) 5883415-19
Fax: (068) 5883414
2nd Floor, Dawood Centre, Autobhan Road, Hyderabad.
Tel: (022) 3411361-9
Fax: (022) 34113670
1st Floor, Meezan Executive Tower, 4 - Liaquat Road, Faisalabad
Tel: (92-41)2541011-7, 2541014
1st Floor, 28-Mozang Road, Lahore Tel: (92-42)36361191-5,36360740-7
Showroom
West View Building, Preedy Street, Saddar, Karachi
Tel : (92-21) 32720833, 32727607
Customer Contact Centre
UAN: (92-42)111-245-222
Toll Free: 0800-245-22
Email: contact.centre@atlashonda.com.pk (Within working hours from Monday to Friday)
Atlas Honda Limited 03
Chairman's Review
I am pleased to present the unaudited condensed interim financial information of the Company for the half year ended September 30, 2022.
MACROECONOMIC OVERVIEW
During the quarter, the Country's economic situation remained fragile. Concerns on the economic front continued to persist on the back of rising inflation and a challenging external outlook. The situation is further affected by recent flooding, which has caused significant damage. This has led the Government to revisit GDP target downward to 2%. On the other hand, the resumption of the IMF program came as a positive development and provided breathing space to the economy.
On the external front, the current account recorded a deficit of USD 1.9 Billion for 2M FY23, a decline of 19% over the corresponding period of last year. Balance of trade recorded a deficit of USD 9.2 billion for Q1 FY23, down by 21%. The improvement was majorly driven through reduction in the import bill of 12.7% on account of various measures taken by the Government. Home remittances provided the much needed support and held up well at USD 7.7 billion. However, as of September 2022, the State Bank of Pakistan's (SBP) foreign exchange reserves were reduced to alarmingly low levels of USD 7.9 billion compared to last year's USD 19.3 billion. Reflecting the increasing pressures on external account along with external debt servicing, PKR depreciated by more than 29.3% since January 2022. The net revenue collection increased to Rs. 1,635 billion, up by 27% as compared to same period last year. Inflation is rising and was recorded at 23.2% in September 2022, mainly driven by exchange rate pass through to domestic prices, upward revisions in domestic energy, fuel and food prices. Resultantly, the SBP in its recent monetary policy meeting held on October 10, 2022, maintained the benchmark interest rate at higher level of 15.0%
The agriculture sector is projected to contract for the first time in more than two decades. The torrential monsoon rains and flash floods have damaged an estimated 8.3 million acres of cultivated crops. This has caused substantial damage to the standing cotton, rice and sugar cane harvest. Considering the agricultural damage, the Country may have to resort towards import of cotton to meet domestic requirements. Resultantly, consumption saw an overall slowdown in the rural areas.
The LSM output contracted by 1.4% in 2M FY23 largely driven by broad based deterioration in domestically oriented sectors. Most demand indicators including sales of cement, POL and automobiles reflected downward trend. The spill-over effects of flood related damages, monetary tightening and higher input cost call for better coordinated actions to ensure sustained growth in this segment.
OPERATING RESULTS
During the half year ended September 30, 2022, the Company achieved net sales of Rs. 67.2 billion, an increase of 12.4% as compared to last year. However, gross profit declined from Rs.
4.5 billion to Rs. 4.1 billion, down by 9.8%. Resultantly, Gross profit percentage recorded at 6.1% as compared to 7.6% of same period last year. The decline in gross profit was due to lower sales volume, increase in material prices, rising energy cost and devaluation of Pak rupee with a less than commensurate increase in selling prices. The key challenge is to improve this over the course of the year. Sales and marketing expenses rose to Rs. 1.3 billion, an increase of 13.6%, which is attributable to promotional activities and increase in fuel cost. Administrative expenses rose by 2.5% mainly due to effects of continued
Sales Growth
(Rs. in million)
+12% | 6% |
7.6% | |
59,810 | 67,265 |
September | September |
2021 | 2022 |
Sales | Gross Profit (%) |
04 Half Yearly Report September 2022
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Atlas Honda Ltd. published this content on 31 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2022 06:08:01 UTC.
