INTRODUCTION: Hinopak Motors Limited was established in 1986 with the collaboration of Hino Motors Japan, Toyota Tsusho Corporation, Al Futtaim Group, UAE and PACO Pakistan. As the latter two founding partners declared divestments in 1998, Hino Motors Japan and Toyota Tsusho Corporation obtained majority shares in the company. Hino is listed on the Karachi and Lahore stock Exchanges. It was the first automobile company in Pakistan to have received the ISO-9001 and ISO-14000 certifications and also the first one to export buses from Pakistan.
Hinopak's plant is situated at SITE area in Karachi and the company specialises in the assembly, manufacture and sales of heavy and medium sized vehicles. These include trucks, buses and specialised vehicles for commercial use. The company incorporated the 3S network of automobile sales and servicing in Pakistan for the first time and was also involved in the provision of buses under the "Urban Transport Scheme", making it the largest supplier of urban buses notably in Punjab and Sindh.
Notable reductions were observed in finance cost for the year, coming down by 124 percent. There has also been a considerable decline in loss on re-measurements in post employment obligations, which have come down sharply by 41 percent. However, the value of available for sale financial assets has grown negative this year. Consequently, the company registered a remarkable increase in 'other comprehensive income' for the year.
The company's market share in trucks remained steady at 44 percent compared with the corresponding period of last year. However, its market share in buses has now increased further from 81 percent last year to 88 percent this year. Cumulatively for the trucks and buses auto category, Hinopak remains the largest player with a total share of 52 percent in the sector. This share has come down marginally from 53 percent last year.
Appreciation in the value of rupee appears to have also contributed to higher margins for the company, aside from increased sales for the year. Total production of trucks and buses combined registered an increase of 28 percent for 9M FY14 compared with the corresponding period of last year, while sales increased by 24 percent.

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Hinopak Motors Ltd Key Financials 9MFY14
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Rs (mn)                             2014        2013
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Sales                            9208.42     7528.14
Cost of sales                  -7876.925   -6718.462
Gross profit                    1331.495     809.678
Distribution costs              -306.117    -295.129
Administrative expenses         -254.986    -206.266
Other income                     164.274      71.085
Other expenses                   -80.113      -6.293
Profit from operations           854.553     373.075
Finance income/(cost)             80.445    -324.999
Profit before taxation           934.998      48.076
Taxation                        -311.059     -18.885
Profit after taxation            623.939      29.191
Basic and diluted EPS (Rs)         50.31        2.35
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