KARACHI: Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) reported a 16.08% increase in after-tax profit, reaching Rs2.71 billion [EPS: Rs18.97] for the year ended March 31, 2025, compared to Rs2.33 billion [EPS: Rs16.34] in the previous year. The company also announced a final cash dividend of Rs8 per share, or 80%.
This marks a modest recovery in profitability compared to FY24, when earnings were under pressure from inflation, auto financing restrictions, and import constraints. The turnaround was driven largely by a 41.75% surge in revenue, which climbed to Rs78.07 billion from Rs55.07 billion in the same period last year (SPLY), amid an improving supply chain and easing monetary conditions.
Gross profit increased by 47.82% to Rs6.66 billion, as cost of sales rose in line with revenue by 41.21% to Rs71.4 billion. However, the company faced significant pressure from non-core income streams, as other income plummeted by 56.1% to Rs988.73 million—down from Rs2.25 billion last year, when elevated returns on cash holdings had boosted earnings.
Administrative and distribution expenses also weighed on margins, rising 27.66% and 23.69% YoY respectively, reflecting higher marketing spend and inflationary pressures. On the positive side, finance costs declined 14.54% to Rs1.04 billion, indicating improved cash flow and lower reliance on debt.
Honda Atlas paid Rs565.63 million in taxes during the year, up 35.09% from FY24.
The company’s profitability in FY25, while stronger than last year, still reflects challenges in the broader auto sector, including weakened consumer demand and volatile costs. However, the rebound in revenues suggests some normalization in volumes and pricing power.
