KARACHI: Atlas Honda Limited (PSX: ATLH), Pakistan’s largest motorcycle manufacturer, has reported a robust 57.1% year-on-year (YoY) surge in profit after tax, reaching Rs15.25 billion for the fiscal year ended March 31, 2025. The company’s earnings per share (EPS) stood at Rs122.91, up from Rs78.45 last year.
The board announced a final cash dividend of Rs42 per share (420%), which, combined with the earlier interim dividend of Rs32 (320%), brings the total payout to Rs74 per share (740%) for the year.
Founded in 1962 as a joint venture between the Atlas Group and Honda Motor Co. of Japan, Atlas Honda operates two major production plants in Sheikhupura and Karachi. It is the country’s most prominent assembler of motorcycles and auto parts, producing the widely used CD70 and CG125 models, and maintains a dominant share in Pakistan’s two-wheeler market.
The FY25 performance marks a significant turnaround from the previous year when profit after tax stood at Rs9.71 billion. In FY24, the company navigated challenges like high inflation, reduced consumer demand, and import restrictions on auto parts due to foreign exchange constraints, which had suppressed sales and margins.
In FY25, Atlas Honda’s net sales rose by 28% to Rs203.89 billion, up from Rs159.29 billion in FY24, as demand improved amid easing inflationary pressure and better availability of parts. Gross profit climbed 81.4% to Rs22.18 billion, driven by improved cost efficiencies despite a 23.56% increase in the cost of sales to Rs181.71 billion.
Operating profit rose 54.5% to Rs24.47 billion, despite higher administrative and marketing costs. Sales and marketing expenses grew by 20.7% to Rs4.41 billion, and administrative expenses increased by 21.7% to Rs1.31 billion. However, a stable rise in other income — up 1.45% to Rs9.19 billion — and a sharp 338% increase in the share of profit from an associate helped lift the bottom line.
Finance costs increased by nearly 23% to Rs125.49 million due to elevated interest rates, but were marginal relative to overall profitability. The company’s tax burden also rose significantly, with current tax payments amounting to Rs8.38 billion — up 73.3% from last year — while deferred tax expenses increased by 58.2%.
For the full year, total comprehensive income stood at Rs15.29 billion, reflecting a 57.45% increase from the prior year.
Atlas Honda’s performance is notable within a broader auto industry landscape that is still recovering from economic turbulence, including persistent rupee volatility, high interest rates, and suppressed consumer financing. However, the company’s strong fundamentals, deep market penetration, and operational efficiency continue to position it favourably.
