Honda Atlas Cars (Pakistan) Limited (HCAR) experienced a significant rise in profit-after-tax (PAT) by nearly 40%, reaching Rs202.63 million in the quarter ended June 30 of fiscal year 2024-25. This is a notable increase compared to the PAT of Rs144.96 million recorded in the same period the previous year.
According to HCAR’s financial statements released by the Pakistan Stock Exchange (PSX) on Wednesday, the 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 is largely attributed to a massive increase in sales.
In this quarter, HCAR’s sales surged to Rs15.97 billion, a remarkable 324% increase from Rs3.77 billion in the same period last year.
Financial Highlights:
- Gross Profit: HCAR reported a gross profit of Rs1.01 billion in 1QMY25, reversing a gross loss of Rs148.4 million in the same period last year. The company’s gross margins stood at 6.3%.
- Administrative Expenses: There was a 44% increase in administrative expenses, which totaled Rs392.15 million in 1QMY25, up from Rs271.92 million in the same period last year.
- Other Income: HCAR’s other income declined by nearly 62%, amounting to Rs343.77 million in 1QMY25, compared to Rs902.69 million in the same period last year.
- Finance Cost: The company’s finance cost saw an exponential increase of 557%, reaching Rs287.09 million in 1QMY25, up from Rs43.67 million in the same period last year. This rise is primarily due to increased interest rates during the period.
Despite these challenges, HCAR posted a Profit before Taxation (PBT) of Rs383.3 million in 1QMY25, up by 43% year-over-year.
Honda Atlas Cars was incorporated in Pakistan as a public limited company in 1992 and began commercial operations in 1994. It is a joint venture between Honda Motor Co., Ltd., Japan, and Atlas Group of Companies, Pakistan, engaged in the assembly, progressive manufacturing, and sale of Honda vehicles and spare parts.
Honda Atlas Cars’ Profit-After-Tax Plunges 82% in Oct-Dec
