Honda records 295 per cent profit jump as Pakistan’s auto sales climb 

ISLAMABAD: Honda Atlas Cars (Pakistan) Limited (HCAR) posted an impressive profit of Rs566.4 million for the quarter ending December 31, fiscal year 2024-25. This marks a significant rise of 295 per cent compared to the same quarter last year.

According to the company’s financial reports, released on Wednesday at the Pakistan Stock Exchange (PSX), HCAR’s profit for the same period last year was Rs143.3 million. Earnings per share (EPS) also saw a boost, rising to Rs3.97 from just Rs1 in the previous year’s quarter.

This remarkable growth is largely due to higher sales figures. HCAR’s sales for the quarter reached Rs17.85 billion, up by 44 per cent compared to Rs12.43 billion in the same quarter last year.

On the expense side, the cost of sales also increased, rising 42 per cent to Rs16.2 billion. Despite this, the company’s gross profit grew by nearly 60 per cent, standing at Rs1.64 billion, compared to Rs1.03 billion the previous year. Gross margins improved as well, reaching 9.2 per cent, compared to 8.3 per cent last year.

The automotive industry as a whole saw positive momentum. As per Pakistan Automotive Manufacturers Association (PAMA) data, car sales across Pakistan jumped 69 per cent in December 2024, with 9,820 units sold, compared to the same month last year.

In other developments, HCAR reported an increase in administrative expenses, which rose by 15 per cent to Rs457.3 million during the quarter, compared to Rs398.4 million in the same period last year. However, the company’s other income saw a decline of 34 per cent, down to Rs189.9 million from Rs288.2 million.

On the bright side, HCAR managed to reduce its finance costs significantly, dropping by 52 per cent to Rs214.9 million, down from Rs443.2 million the previous year.

During the quarter, the company also reported acquiring Rs109 million under levies, which further supported its financial standing. Ultimately, HCAR’s profit before taxation (PBT) surged by 387 per cent, reaching Rs1.1 billion.

HCAR has a long-standing presence in Pakistan. Established in 1992 as a public limited company, it began its commercial operations in 1994 through a joint venture between Honda Motor Co., Ltd. of Japan and the Atlas Group of Companies in Pakistan.

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