Fakiha Tariq

By marking the gross profit of 17.2% over the sales during 1QFY23, Millat Tractors Limited (MTL) led the automobile assembler sector on the KSE 100 index, reports WealthPK. The automobile assembler sector on the PSX is a group of 11 companies in total. However, the top five which represent the automobile assembler sector on the KSE 100 index are Indus Motor Company Limited (INDU), Millat Tractor Limited (MTL), Pak Suzuki Motor Company Limited (PSMC), Honda Atlas Cars (Pakistan) Limited (HCAR) and Atlas Honda Limited (ATLH).

KSE 100 Automobile Assemblers – Profitability 1QFY23

In terms of profitability, MLT led the sector in 1QFY23 reporting gross profit of Rs1.1 billion on the gross sales of Rs6.8 billion in the quarter ending September 22. However, the net profit margin remained 6.6% with net profit of Rs450 million. ATLH followed the MTL to the runner-up position in terms of profit earning by 1QFY23. ATLH earned gross profit of Rs1.4 billion over the sales of Rs29 billion. The net profit margin for the 1QFY23 was reported to be 2.6%. HCAR and PSMC reported net losses of 2% and 8.4% respectively in the quarter ending September 22.

INDU as the largest company in the automobile sector on the KSE 100 made highest sales of Rs37 billion among its peers in 1QFY23. It reported gross loss of 6.3%, whereas maintained by the company’s other income head, the net profit was reported to be 3.5% over the quarterly (Jul to Sept) sales. In terms of earnings per share value (EPS), INDU led the sector by reporting the EPS value of Rs16.5. ATLH earned Rs. 6.26 per share while MTL was able to make Rs4.65 per share for its investors. HCAR and PSMC reported loss per share in 1QFY23.

KSE 100 Automobile Assemblers – Market Capitalisation

INDU with the market capitalisation of Rs76.7 billion is the largest company among the automobile assemblers on the KSE 100 index followed by MTL, which reported the market cap of Rs68.6 billion. On the third and fourth number come ATLH with Rs40.4 billion and HCAR with Rs21.8 billion of market cap. The last representator of automobile assembler sector on the KSE 100 is PSMC with the market cap of Rs. 11.9 billion.

KSE 100 Automobile Assemblers– 5MFY23 (Jul to Nov)

By the end of first five months (Jul 22 to Nov 22) of Fiscal Year 23, PSMC topped among the nominees of its sector on the KSE 100 index as per traded volume. Though both reporting net losses in 1QFY23, PSMC and HCAR topped the peer companies in terms of trade volume over the 5MFY23.

It has been observed that PSMC and HCAR stood first and second by reporting the traded volume of 149,176 and 86,456 respectively. Out of the five automobile assemblers, ATLH traded the least on the PSX by stating the average value of 1,884 shares in 5MFY23.

MTL topped the profitability section in 1QFY23, reporting the highest negative returns of -0.312% in the 5MFY23. The average stock returns of all the five automobile assemblers remained negative during 5MFY23, thus adding average losses to their portfolios. However, ATLH added the minimal loss of -0.107% to its investors’ portfolios when compared to the other peer companies on the KSE 100 during 5MFY23.

Credit : Independent News Pakistan-WealthPk