Honda Atlas Cars Analysis
Honda Atlas Cars Analysis
Industry Overview
Type: Automobile, Four Wheeler,
Passenger cars
48
16
36
1000
800
Company Introduction
Incorporated on November 04, 1992
Joint venture between Honda Motor Company Limited
Japan, and the Atlas Group of Companies, Pakistan.
Sponsors: M/s Honda Motor Co. Ltd. (51%), M/s Shirazi
Capital (Pvt.) Ltd. (22.78%), M/s Shirazi Investments
(Pvt.) Ltd. (7.42%)
06 product lines (City, City Aspire, Civic, CV-R, Accord,
HV-R)
Competitors: IMC, Pak Suzuki
Average Production
Average Sales
Atlas Honda
50,000
18,682
18,682
IMC
54,800
40,034
40,082
Peer comparison
(Sales)
50,000
60,000
40,000
50,000
30,000
40,000
8
29
30,000
20,000
20,000
10,000
-
Market Share
63
10,000
2015 2014 2013 2012 2011
Atlas Honda
Indus Motors
Indus Motors
Honda Atlas
Suzuki
IMC
Dividend History
2015
2014 2013
HONDA
Millions
INDUS
MOTORS
Millions
714
428
43
5.0
3.0
0.3
Dividend Payout %
22.58
Working capital
1,806
18,469
Equity
5,120
24,036
Revenue
37,764
96,516
Net profit
3,162
9,110
Dividend
714
4,889
22.15
115.9
EPS
NP Margin (%)
8.4
39.9 17.54
2.7
0.3
6,288
80
Dividend Payout %
69.02
NP Margin (%)
9.44
2,318 1,965
29.5
25
59.86 58.52
6.79
5.26
Finance cost
Profit before taxation
Taxation
2015
2014
3.5%
9.1 %
67%
37,764,159
(32,991,341)
4,772,818
39,153,254
(36,296,009)
2,857,245
27%
(434,257)
(340,556)
(319,940)
(287,026)
218,979
270,548
(451,897)
(364,890)
(987,115)
(721,924)
3,785,703
2,135,321
(18,666)
(38,075)
3,767,037
2,097,246
(604,660)
(1,023,576)
Analysis
Launch of 11th generation Toyota corolla in July
2014.
Decline in prices of raw material
Favorable exchange rate parity
Decline in commodity prices (Steel, oil)
Increased admin and selling expense to maintain
sales momentum.
Reduced Finance Cost as the company is now able
to deliver the cars in 60 days of advance payment
Ratio Analysis
RATIOS
Current ratio
Quick ratio
Total liabilities to equity
Days sales in inventory days
Operating cycle
Payment conversion period
Cash cycle
Dividend payout ratio
Return on equity %
Earning / (loss) per share Rs
Price earning ratio Times
Dividend per ordinary share Rs
Break up value per share Rs
Market value per share Rs
INDUSTRY
AVERAGE
1.20
1.53
1.76
0.60
0.97
1.03
1.72
1.10
1.11
61
27
48
61
31
52
41
42
42
20
23%
(11)
69%
10
38%
62
38
41
22.10
115.91
8.30
10.78
5.00
80.00
36.00
305.80
183.00
1,249.00
33.33
Balance Sheet
Rupees in thousand
2015
2014
No
te
EQUITY
AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorized share capital
200,000,000 (2014: 200,000,000)
ordinary shares of Rs 10 each
2 ,0 0 0 ,0 0 0
2,000,000
1 ,4 2 8 ,0 0 0
1,428,000
5
6
Accumulated profit
526,000
76,000
3 ,1 6 5 ,7 5 2
887,220
5 ,1 1 9 ,7 5 2
2,391,220
NON-CURRENT LIABILITIES
D e f e r r e d lia b ilit ie s
D e fe rre d re v e n u e
52,552
44,425
11,623
11,709
64,175
56,134
CURRENT LIABILITIES
Current portion of deferred revenue
Short term borrowings - secured
Accrued mark up
Trade and other payables
4 ,6 5 1
8
9
10
1 ,7 6 2
13,790
8 ,7 3 5 ,7 2 9
9 ,8 5 6 ,2 4 5
8 ,7 4 2 ,1 4 2
9,870,035
1 3 ,9 2 6 ,0 6 9
12,317,389
11
Balance Sheet
Analysis
Cash position improved by 43% in 2015
Cash utilization: Working capital and capital
work
For loans and advances, there is a huge amount
of Rs. 1,003 million due from government in the
form of income tax which will be adjusted in
years to come whereas other prepayments and
loans and advances to suppliers will be
converted to cost of goods sold.
2015
2014
2013
2012
2011
46,827,557
37,764,159
39,153,254
30,274,604
16,599,608
22,026,109
(40,909,263)
(32,991,341)
(36,296,009)
(28,827,522)
(16,643,607)
(21,826,799)
5,918,294
4,772,818
2,857,245
1,447,082
(43,999)
199,310
(568,877)
(434,257)
(340,556)
(218,707)
(130,550)
(139,185)
Administrative Expenses
(383,928)
(319,940)
(287,026)
(201,908)
(158,943)
(171,729)
227,738
218,979
270,548
213,434
204,456
83,977
(560,352)
(451,897)
(364,890)
(524,117)
(217,842)
(64,945)
4,632,876
3,785,703
2,135,321
715,784
(346,878)
(92,572)
(18,666)
(18,666)
(38,075)
(190,967)
(151,926)
(152,255)
4,614,210
3,767,037
2,097,246
524,817
(498,804)
(244,827)
(740,643)
(604,660)
(1,023,576)
(280,530)
(33,409)
(53,625)
3,873,567
3,162,377
1,073,670
244,287
(532,213)
(298,452)
(Rupees in thousand)
Sales
Cost of Sales
Gross Profit/ (loss)
Future outlook
New Model to boost volumetric growth
Better working capital management
Auto financing backing the sector growth