Atlas Honda : Transmission of Half Yearly Report for the Period Ended September 30, 2024

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

Chairperson

Azam Faruque

Director

Abid Naqvi

Director

Mashmooma Zehra Majeed Director

Masanori Kito

Director

Tetsuya Komine

Director

Kazushi Yamanaka

Director

Saquib H. Shirazi

Chief Executive Officer

Maheen Fatima

Company Secretary

Audit Committee

Mashmooma Zehra Majeed Chairperson

Azam Faruque

Member

Abid Naqvi

Member

Muhammad Asim

Head of Internal Audit

Maheen Fatima

Secretary

Human Resource & Remuneration Committee

Mashmooma Zehra Majeed Chairperson

Abid Naqvi

Member

Saquib H. Shirazi

Member

Saadullah Ejaz

Secretary

Management

Saquib H. Shirazi

Chief Executive Officer

Afaq Ahmed

Vice President Marketing

Khawaja Shujauddin

General Manager JVs Coordination

Danyal Ahmed Rasheed

Chief Financial Officer

Saadullah Ejaz

General Manager Human Resources &

Administration

Faisal Mahmud

General Manager Plants

Muhammad Ammar

General Manager New Model Center

Hassan Mushtaq Cheema

General Manager Production, Planning & Control

Zia Ul Hassan Khan

General Manager Sales

Muhammad Zafar Iqbal

General Manager After Sales

Rashid Ahmed

General Manager Commercial & Planning

Tahir Nazir

General Manager Supply Chain & Secretary

Muhammad Rashad Rashid

General Manager Quality Assurance

Tahir Khan

General Manager Information Technology

Auditors

Shinewing Hameed Chaudhri & Co.

Chartered Accountants

02 Half Yearly Report September | 2024

Company Information

Legal Advisors

Mohsin Tayebaly & Co.

Tax Advisors

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: [phone]

Fax: [phone]

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

F-36, Estate Avenue, S.I.T.E., Karachi-75730

UAN: (92-21)111-111-245

Tel: [phone]

Fax: [phone]

26-27 KM, Lahore-Sheikhupura Road,

Sheikhupura-39321

Tel: [phone]

Fax: [phone]

Branch Offices & Customer Care Centres

Azmat Wasti Road, Multan

Tel: [phone]

(92-61)111-112-411

Fax: [phone]

Islamabad Corporate Center,

Plot No. 784/785, Golra Road, Islamabad

Tel: [phone]

Fax: [phone]

Makhdoom Altaf Road, West Sadiq Canal

Bank, Near City School, Rahimyar Khan

Tel: [phone]

Fax: [phone]

2nd Floor, Dawood Centre, Autobhan Road, Hyderabad

Tel: [phone]

Fax: [phone]

1st Floor, Meezan Executive Tower, 4 - Liaquat Road, Faisalabad

Tel: [phone]

1st Floor, 28-Mozang Road, Lahore Tel: [phone]

Show Room

West View Building, Preedy Street,

Saddar, Karachi

Tel : [phone]

Customer Contact Centre

UAN: (92-42)111-245-222

Toll Free: 0800-245-22

Email: [e-mail] (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, 2024.

MACROECONOMIC OVERVIEW

Pakistan's economy has shown signs of recovery, with key indicators reflecting marked improvement. This progress is driven by effective policy management, support from international financial institutions, and a commitment to structural reforms. As a result, GDP growth has been revised upward to 3.2%, surpassing the initial target of 2.6%. Additionally, the International Monetary Fund (IMF) has approved a USD 7 billion loan under the Extended Fund Facility (EFF) for a three-year period. These positive developments are expected to create a multiplier effect, fostering stronger and more inclusive economic growth in FY25.

On the external front, the current account deficit for 3M FY25 stood at USD 0.9 billion, a 92% reduction from the same period last year. The trade deficit narrowed to USD 5.4 billion, down by 4.2%, driven by controlled imports and 16% growth in exports. Support from bilateral and multilateral partners made a notable increase in Foreign Direct Investments of USD 771 million, up by 48%. Home remittances have also provided much-needed support and held up well at USD 8.8 billion. Resultantly, the foreign exchange reserves reached USD

15.9 billion, up by 109% compared to same period last year. Inflation dropped to 6.9% in September 2024, the lowest in 44 months, allowing the State Bank of Pakistan to reduce the policy rate by 200 basis points to 17.5%. Reduced inflationary pressures and improved balance of payments propelled the PSX 100 index to historic heights, surpassing 81,000 points. However, fiscal collections fell short by Rs. 96 billion against the estimated Rs. 2.652 trillion target.

Agricultural growth is expected to remain modest at 1.9% in FY25, impacted by climate- related sowing delays, lower wheat prices, and reduced cotton cultivation. However, easing supply chain challenges and improved availability of farm inputs will support recovery. The significant increase in the import of agricultural machinery in FY24 reflects rising investment in farming technology which is expected to boost productivity over time. This growth in farming efficiency is likely to sustain strong demand for consumer durables in rural areas.

Large-scale manufacturing (LSM) registered a 2.4% growth in July 2024, recovering from a 5.4% contraction last year. This improvement was driven by a stable exchange rate, easing inflation and a favorable external environment. Growth was recorded in 14 out of

22 sectors, including textiles, food and beverages, petroleum
products, chemicals and automobiles. With currency stabilization		Sales Growth
and easing of monetary policies, the industrial sector is expected			(Rs. in million)
		+25%	8.9%
to gain further momentum, offering a positive outlook for the future.
5.9%
OPERATING RESULTS				92,944
During the half year ended September 30, 2024, the Company	74,185
achieved net sales of Rs. 93 billion, an increase of 25.3% compared
to the corresponding period of the last year. The gross profit increased
from Rs. 4.3 billion to Rs. 8.3 billion, up by 90.1% as a result of
	Sep	Sep
higher sales volume and better sales mix. Sales and marketing
2023	2024
expenses rose to Rs. 1.87 billion, an increase of 23.1% attributable to		Sales	Gross Profit (%)

04 Half Yearly Report September | 2024

promotional activities and general inflation. Administrative expenses also increased by 18.7% mainly due to inflation. Other income, net of other operating expenses and financial charges, contributed an impressive Rs. 4.8 billion to the bottom line. This is on account of efficient treasury operations and higher policy rates. The above factors supported the Company in achieving six months profit before tax of Rs. 10.7 billion as compared to profit before tax of Rs. 6.2 billion in the same period last year. Resultantly, the profit after tax for the six-months period ended stood at Rs.6.6 billion, up by 86%. This is translated into Earnings per Share (EPS) of Rs. 53.36 against Rs. 28.68 in the corresponding period of last year.

FUTURE OUTLOOK

Profit Growth
+86%	53.36
28.68
3,559	6,621
Sep	Sep
2023	2024
Profit after tax (Rs. in million)
Earning per share (Rs.)

The economic outlook is expected to remain positive. This is supported by a stable external environment, better access to imported inputs and easing supply chain disruptions. Lower inflation is also playing a key role. However, strict adherence to the IMF program will be crucial. This includes maintaining fiscal discipline, securing rollovers, attracting fresh external financing and avoiding major policy changes.

The government has implemented measures to facilitate restructuring and privatization of state-owned enterprises, along with a focus on export-led growth. Moving forward, it is crucial to sustain these reforms, with a continued emphasis on long-term economic stability to ensure sustainable growth.

The Company is effectively aligned and focused on overcoming challenges by improving its operating results and maintaining market leadership, all with the goal of developing a long- term business strategy that continues to enhance the stakeholders value. In this regard, the "Atlas Way" and "Atlas Systems" remain fundamental to our business philosophy.

(We are determined to keep the entity above board)

ACKNOWLEDGEMENT

The Atlas Group takes great pride in its partnership with Honda Motor Company Limited. We wish to acknowledge their continued support and cooperation in maintaining high standards of excellence. I would like to thank our valued customers for their ongoing trust, the management team for their dedicated efforts, the Board of Directors for their guidance, and Mr. Saquib H. Shirazi - CEO, for his inspiring leadership. I also express gratitude to all stakeholders - including bankers, dealers, vendors, associates and shareholders for their contributions in building Atlas Honda Limited into an exceptional company.

Dated: October 30, 2024	Aamir H. Shirazi
Karachi

Atlas Honda Limited 05

Profit Growth
+86%	53.36
28.68
3,559	6,621
Sep	Sep
2023	2024
Profit after tax (Rs. in million)
Earning per share (Rs.)

(We are determined to keep the entity above board)

06 Half Yearly Report September | 2024

Sales Growth
(Rs. in million)
+25%	8.9%
5.9%
	92,944
74,185
Sep	Sep
2023	2024
Sales	Gross Profit (%)

Atlas Honda Limited 07

INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF

Report on review of Interim Financial Statements

Introduction

We have reviewed the accompanying condensed interim statement of financial position of Atlas Honda Limited as at September 30, 2024 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the financial statements for the half year then ended (here-in-after referred to as the "interim financial state- ments"). Management is responsible for the preparation and presentation of these interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.

The figures of the condensed interim statement of profit or loss and other comprehensive income for the quarters ended September 30, 2024 and 2023 have not been reviewed, as we are required to review only the cumulative figures for the half year ended September 30, 2024.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements are not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.

The engagement partner on the review resulting in this independent auditor's review report is Osman Hameed Chaudhri.

SHINEWING HAMEED CHAUDHRI & CO.

CHARTERED ACCOUNTANTS

KARACHI;

UDIN: RR202410104LvSFG6Wzd

08 Half Yearly Report September | 2024

Condensed Interim Statement of Financial Position as at September 30, 2024

Assets	Note
Non current assets

Unaudited	Audited
September 30,	March 31,
2024	2024

------- (Rupees in '000) -------

Property, plant and equipment	5
Intangible assets	6
Long term investments
Long term loans and advances
Long term deposits
Current assets
Stores, spares and loose tools
Stock-in-trade	7
Trade debts
Loans and advances
Trade deposits and prepayments
Accrued mark-up / interest
Other receivables	8
Short term investments
Bank balances	9
Equity and Liabilities
Equity
Authorized capital
150,000,000 (March 31, 2024: 150,000,000)
ordinary shares of Rs.10 each
Issued, subscribed and paid-up capital
124,087,935 (March 31, 2024: 124,087,935)
ordinary shares of Rs.10 each
Reserves
Liabilities
Non current liabilities
Lease liabilities
Staff retirement benefits
Deferred taxation
Current liabilities	10
Trade and other payables
Taxation - net
Unclaimed dividend
Dividend payable
Current portion of lease liabilities
Contingencies and commitments	11

12,397,876

10,396

373,796

111,231

43,882

12,937,181

966,260

8,952,465

1,980,983

96,421

327,986

1,187,182

7,160

27,595,796

20,410,888

61,525,141

74,462,322

1,500,000

1,240,879

30,424,887

31,665,766

290,489

647,631

796,881

1,735,001

39,283,428

1,559,277

181,877

-

36,973

41,061,555

42,796,556

74,462,322

12,445,718

7,826

350,593

106,531

41,672

12,952,340

1,027,714

9,621,651

1,021,954

89,211

229,118

656,355

16,137

13,959,667

36,369,606

62,991,413

75,943,753

1,500,000

1,240,879

27,526,690

28,767,569

289,306

663,559

877,658

1,830,523

43,151,951

1,237,690

215,084

682,949

57,987

45,345,661

47,176,184

75,943,753

The annexed notes 1 to 18 form an integral part of these condensed interim financial statements.

Aamir H. Shirazi	Saquib H. Shirazi	Danyal Ahmed Rasheed
Chairman	Chief Executive Officer	Chief Financial Officer
		Atlas Honda Limited	09