Honda Atlas quarterly profit jumps over 300pc on strong sales growth

KARACHI: Honda Atlas Cars Pakistan recorded a major turnaround in its financial performance for the quarter ended June 30, 2025, posting a profit of Rs828.44 million, a 309 per cent jump from Rs202.63 million in the same period last year.

The sharp increase in profit came on the back of a 66 per cent rise in sales revenue, which reached Rs26.46 billion compared to Rs15.97 billion a year earlier. This helped the company more than double its gross profit to Rs2.27 billion, even though the cost of sales also rose by around 62 per cent to Rs24.19 billion.

Earnings per share for the quarter stood at Rs5.80, up from Rs1.42 in the same period last year.

The company’s administrative costs climbed 54 per cent to Rs603.91 million, while marketing and distribution expenses went up by 35 per cent to Rs350.25 million. Despite these increases, the bottom line was supported by a 61 per cent rise in other income, which reached Rs553.03 million.

However, Honda Atlas also saw a sharp jump in other expenses, which surged by over five times to Rs210.24 million. Even so, lower finance costs, which fell 29 per cent year-on-year to Rs202.64 million, helped ease pressure on the company’s balance sheet.

Tax expenses saw a steep increase as well, rising more than fourfold to Rs632.39 million, up from Rs123.49 million in the same period last year.

Overall, the quarter marked a strong rebound for Honda Atlas, driven largely by higher car sales and improved financial handling, despite increased operational and tax-related expenses.

For the three-month period ended June 30, 2025, Honda Atlas Cars reported sales of Rs26.46 billion, marking a robust 65.69 per cent increase from Rs15.97 billion in the same period last year. The cost of sales also rose by 61.69 per cent to Rs24.19 billion, compared to Rs14.96 billion a year earlier. As a result, the company’s gross profit more than doubled to Rs2.27 billion, up 124.89 per cent from Rs1.01 billion in the previous year.

Distribution and marketing costs climbed 35.02 per cent to Rs350.25 million, while administrative expenses jumped 54 per cent to Rs603.91 million. Other income grew by 60.87 per cent to Rs553.03 million, offering additional support to the bottom line. However, other expenses rose sharply to Rs210.24 million, showing a massive increase of 530.19 per cent from Rs33.36 million last year.

The company’s finance cost dropped by 29.41 per cent to Rs202.64 million, reflecting improved financial efficiency. As a result, profit before taxation stood at Rs1.46 billion, a surge of 347.95 per cent from Rs326.12 million a year ago. No levy was recorded during the current period, compared to Rs57.20 million in the same quarter last year.

After accounting for taxation of Rs632.39 million, which rose over four times from Rs123.49 million previously, Honda Atlas closed the quarter with a net profit of Rs828.44 million, up 308.85 per cent from Rs202.63 million. The company also reported earnings per share of Rs5.80, compared to Rs1.42 during the same period last year.

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