Atlas Honda Limited (PSX: ATLH) reported a 38.2% year-on-year (YoY) increase in profit after tax, reaching Rs 4.81 billion (EPS: Rs 38.74) for the three-month period ended June 30, 2025, compared to Rs 3.48 billion(EPS: Rs 28.02) in the same period last year.
The company’s net sales surged by 31.3%, amounting to Rs 62.28 billion, up from Rs 47.42 billion in the previous year. This growth outpaced the 27.2% increase in cost of sales, which amounted to Rs 54.46 billion, resulting in a strong 69.8% rise in gross profit, which stood at Rs 7.82 billion.
Despite an increase in sales and marketing expenses (up 30.6%) and administrative costs (up 24.6%), Atlas Honda managed to boost its profit from operations by 38.1%, reaching Rs 7.8 billion. The rise was supported by a 45.1% increase in share of profit from an associate, totalling Rs 15.61 million.
On the downside, other income declined by 26.6%, and other operating expenses rose by 34.2%. Finance costs increased by 23.2%, but the overall profitability remained strong.
On the tax front, the company reported a 49.5% increase in current tax to Rs 3.1 billion, with a slight 3.4% increase in deferred tax. Overall, total tax expense grew by 53.2% to Rs 2.95 billion, impacting the profit after tax but still reflecting a strong 38.2% YoY growth in net profit.
Despite the higher taxes, Atlas Honda delivered a strong bottom-line performance, closing with a profit before income tax of Rs 7.75 billion, marking a 43.6% YoY increase.
