Honda Atlas Cars (Pakistan) Limited (HCAR) has reported a significant increase in profit-after-tax (PAT), marking a rise of nearly 40% to Rs202.63 million for the quarter ending June 30 of fiscal year 2024-25, compared to Rs144.96 million in the same period last year.
According to financial statements disclosed at the Pakistan Stock Exchange (PSX) on Wednesday, HCAR’s earnings per share (EPS) stood at Rs1.42 for the quarter, up from Rs1.02 reported in the corresponding period of the previous year.
The surge in profit can be attributed to a substantial increase in sales during the quarter. HCAR achieved sales of Rs15.97 billion, marking a remarkable 324% increase from Rs3.77 billion reported in the same quarter last year.
In the first quarter of the fiscal year 2024-25, HCAR reported a gross profit of Rs1.01 billion, a significant turnaround from the gross loss of Rs148.4 million reported in the same period of the previous year. The company’s gross margins for the quarter stood at 6.3%.
However, HCAR also experienced a notable increase in administrative expenses, which rose by 44% to Rs392.15 million from Rs271.92 million in the corresponding period last year.
The company’s other income witnessed a decline of nearly 62%, amounting to Rs343.77 million in the first quarter of fiscal year 2024-25, compared to Rs902.69 million in the same period of fiscal year 2023-24.
HCAR’s finance costs increased exponentially by 557% to Rs287.09 million in the first quarter of fiscal year 2024-25, up from Rs43.67 million in the corresponding period last year. This increase was primarily due to rising interest rates during the period.
Despite these challenges, HCAR managed to achieve a Profit before Taxation (PBT) of Rs383.3 million in the first quarter of fiscal year 2024-25, marking a 43% year-on-year increase.
Established in 1992 as a joint venture between Honda Motor Co., Ltd., Japan, and Atlas Group of Companies, Pakistan, HCAR began its commercial operations in 1994. The company is primarily involved in the assembly, progressive manufacturing, and sale of Honda vehicles and spare parts in Pakistan.
