Honda Atlas Cars posts 16% rise in bottom line

May 22, 2025 (MLN): Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) posted a profit after tax of Rs2.71 billion [EPS: Rs18.97] for the year ended March 31, 2025, up 16.08% from Rs2.33bn [EPS: Rs16.34] reported in the same period last year (SPLY).

The company declared a final cash dividend of Rs8 per share, representing 80%.

This growth in profitability came on the back of a 41.75% surge in revenue, which reached Rs78.07bn compared to Rs55.07bn in SPLY.

Despite a similar 41.21% rise in cost of sales to Rs71.4bn, the company managed to improve its gross profit by 47.82%, clocking in at Rs6.66bn.

However, other income declined sharply by 56.1% to Rs988.73m from Rs2.25bn in SPLY, weighing on overall profitability.

Administrative expenses increased by 27.66% YoY to Rs1.89bn, while distribution and marketing costs rose 23.69% to Rs1.13bn.

On the bright side, finance costs declined 14.54% YoY to Rs1.04bn, aided by better cost management.

The company’s tax expense stood at Rs565.63m, reflecting a 35.09% increase from the previous year’s Rs418.72m.

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