Honda Atlas Cars’ profit-after-tax up 295% YoY in Oct-Dec

Honda Atlas Cars (Pakistan) Limited (HCAR) registered a profit of Rs566.4 million in the quarter ended December 31 of fiscal year 2024-25, a massive increase of 295% on a year-on-year basis.

HCAR’s financial statements, which were made available at the Pakistan Stock Exchange (PSX) on Wednesday, showed that the company’s profit stood at Rs143.3 million in the same period last year.

The automaker’s earnings per share (EPS) stood at Rs3.97 during the quarter, compared to Rs1 last year.

The increase in profit can be attributed to an increase in sales.

During the quarter, HCAR’s sales clocked in at Rs17.85 billion, compared to Rs12.43 billion in SPLY, an increase of 44%.

While the company’s cost of sales also rose to Rs16.2 billion in 2QFY25, an increase of 42%.

Consequently, the company’s gross profit increased by nearly 60%, clocking in at Rs1.64 billion in 2QFY25, as compared to a gross profit of Rs1.03 billion in SPLY.

As a result, HCAR’s gross margins improved to 9.2% in 2QFY25, compared to 8.3% in the same period last fiscal.

As per the latest Pakistan Automotive Manufacturers Association (PAMA) data, car sales in Pakistan surged 69% to 9,820 units in December 2024 as compared to the same month of the last year.

Meanwhile, as per HCAR’s latest financial results, the automobile company witnessed a jump in its administrative expenses which stood at Rs457.3 million in 2QFY25, up by 15%, as compared to Rs398.4 million in SPLY.

On the other hand, HCAR’s other income registered a decline of nearly 34%, amounting to a meagre Rs189.9 million in 2QFY25, in comparison to Rs288.2 million in 2QFY24.

The automaker saw its finance cost lowered by 52%, standing at Rs214.9 million in 2QFY25, as compared to Rs443.2 million in SPLY.

During the quarter, the company also acquired Rs109 million under levies.

As a result, the company posted a Profit before Taxation (PBT) of Rs1.1 billion in 2QFY25, up by 387% 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.