Islamabad, Jan 22: Honda Atlas Cars (Pakistan) Limited (HCAR) has recently unveiled its financial results for the third quarter of fiscal year 2025, showcasing a robust profit surge to Rs. 566 million. This represents a significant increase, nearly tripling year-over-year (YoY) and more than doubling quarter-over-quarter (QoQ). Over the nine months of fiscal year 2025, the company’s earnings reached Rs. 1.03 billion, marking a 7% growth compared to the previous year’s Rs. 964 million.
This performance exceeded market forecasts, with gross margins reaching 9.2%, surpassing both the anticipated 8.3% and the 8.3% seen in the same quarter the previous year. This improvement in gross margins is attributed to enhanced operational efficiencies and cost management strategies.
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A notable reduction in distribution expenses, which fell by 20% YoY and 19% QoQ to Rs. 147 million, along with a dramatic decrease in other operating expenses—down 72% YoY and 74% QoQ to just Rs. 17 million—played a critical role in bolstering the company’s profitability. These reductions reflect the company’s successful adaptation to a less inflationary environment, optimizing both production and operational costs.
The company also reported a substantial 44% increase in net sales YoY to Rs. 17.8 billion during the quarter, driven by a surge in vehicle sales from 2,374 units in the third quarter of the previous fiscal year to 3,736 units. This sales volume increase underscores Honda Atlas’s growing market presence and consumer demand.
However, administrative expenses saw a moderate rise of 15% YoY to Rs. 457 million, reflecting the ongoing investment in administrative capacities to support expanding operations. Other income experienced fluctuations, decreasing 34% YoY but increasing significantly QoQ, which can be attributed to improved operational efficiencies and shorter delivery times.
Despite these gains, the effective tax rate increased to 43% in the third quarter, up from 37% the previous year, impacting net earnings. The company reported an earnings per share (EPS) of Rs. 3.97 for the quarter and Rs. 7.19 for the nine months, indicating solid shareholder returns.
Overall, Honda Atlas’s latest financials paint a picture of a company successfully navigating market challenges, optimizing its cost structure, and capitalizing on increasing vehicle demand to deliver strong financial performance and shareholder value.
