ISLAMABAD: Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) reported a significant 308.85% increase in profit after tax, reaching Rs828.44 million (EPS: Rs5.80) for the three-month period ending June 30, 2025. This marks a sharp rise from Rs202.63 million (EPS: Rs1.42) in the same period last year.
The surge in profitability was driven by a 65.69% increase in sales, which reached Rs26.46 billion compared to Rs15.97 billion in the same period last year. Despite a similar increase in cost of sales, up 61.69% to Rs24.19 billion, the company more than doubled its gross profit, which grew by 124.89% to Rs2.27 billion.
Administrative expenses rose by 54% to Rs603.91 million, and distribution and marketing costs increased by 35.02%to Rs350.25 million. However, other income rose by 60.87% to Rs553.03 million, contributing to the higher profitability.
Finance costs saw a positive reduction, falling 29.41% YoY to Rs202.64 million, signaling improved financial management. The company’s tax expense rose by 412.09% to Rs632.39 million, primarily due to higher profitability.
The company’s improved performance in the quarter reflects strong demand and effective cost management, with basic and diluted EPS jumping to Rs5.80 from Rs1.42 in the previous year.
