Atlas Honda sees 38% increase in after-tax profit

July 25, 2025 (MLN): Atlas Honda Limited (PSX: ATLH) recorded a 38.2% year-on-year (YoY) increase in profit after tax, reaching Rs4.81 billion (EPS: Rs38.74) for the three-month period ended June 30, 2025, compared to Rs3.48bn (EPS: Rs28.02) in the same period last year.

The company’s net sales rose by 31.3% to Rs62.28bn, up from Rs47.42bn in the previous year.

This sales growth outpaced the increase in cost of sales, which rose by 27.2% to Rs54.46bn from Rs42.81bn, leading to a significant 69.8% surge in gross profit to Rs7.82bn.

Sales and marketing expenses rose by 30.6% to Rs1.17bn, while administrative expenses increased by 24.6% to Rs298.91m.

Other income, however, declined by 26.6% to Rs1.78bn, partially offsetting the increase in operating costs.

Other operating expenses also rose, up 34.2% to Rs354.77m during the quarter.

 Meanwhile, the company reported a 45.1% increase in the share of profit from an associate, which reached Rs15.61m.

As a result, profit from operations grew by 38.1% YoY to Rs7.8bn.

Finance costs increased by 23.2% to Rs34.3m, but this did not materially impact the overall profitability, as profit before levies and income tax still rose 38.2% to Rs7.76bn.

On the tax front, the company reported a 49.5% increase in current tax to Rs3.1bn, while deferred tax income increased slightly by 3.4% to Rs158.32m.

Total tax expense grew by 53.2% to Rs2.95bn, compared to Rs1.92bn in the same period last year.

Despite higher tax costs, Atlas Honda delivered a strong bottom-line performance with a profit before income tax of Rs7.75bn, reflecting a 43.6% YoY increase.

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