Amid massive increase in sales, the profit-after-tax (PAT) of Honda Atlas Cars (Pakistan) Limited (HCAR) rose nearly 40%, clocking in at a Rs202.63 million in the quarter ended June 30 of fiscal year 2024-25 compared to PAT of Rs144.96 million recorded in the same period of the previous year.
As per HCAR’s financial statements made available at the Pakistan Stock Exchange (PSX) on Wednesday, the automobile company’s earnings per share (EPS) stood at Rs1.42 during the quarter, compared to an EPS of Rs1.02 last year.
The rise in profit can be attributed to a massive increase in sales.
During the quarter, HCAR’s sales clocked in at Rs15.97 billion, as compared to Rs3.77 billion in SPLY, an increase of 324%.
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Subsequently, the company reported a gross profit of Rs1.01 billion in 1QMY25 as compared to a gross loss of Rs148.4 million in SPLY. During the period, HCAR’s gross margins stood at 6.3% in 1QMY24.
On the other hand, the automobile company witnessed a jump in its administrative expenses which stood at Rs392.15 million in 1QMY25, up by 44%, as compared to Rs271.92 million in SPLY.
However, HCAR’s other income registered a decline of nearly 62%, amounting to Rs343.77 million in 1QMY25, in comparison to Rs902.69 million in 1QMY24.
The automaker also saw its finance cost jump exponentially by 557%, standing at Rs287.09 million in 1QMY25, as compared to Rs43.67 million in SPLY. The increase in finance costs can be attributed to an increase in interest rates during the period.
However, the company managed to post a Profit before Taxation (PBT) of Rs383.3 million in 1QMY25, up by 43% YoY.
Incorporated in Pakistan as a public limited company in 1992, HCAR commenced its commercial operations in 1994. The company was formed as a result of a joint venture between Honda Motor Co., Ltd., Japan and Atlas Group of Companies, Pakistan.
The company is engaged in the assembly and progressive manufacturing as well as sale of Honda vehicles and spare parts.
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