Honda Atlas Cars (Pakistan) Limited (HCAR) on Friday announced its financial result for 1HMY25 today, posting a profit after tax of PKR 460 million (EPS: PKR 3.22), representing Year on Year (YoY) decrease of 44%.
During 2QMY25 the profitability of the company was recorded at PKR 258 million (EPS: PKR 1.80) compared to a profit of PKR 675 million (EPS: PKR 16.93) in 2QMY24, down by 62% YoY.
Analysts at Arif Habib Limited attributed the decline in overall profitability of Honda Atlas Cars is attributed to decline in other income and increase in finance cost.
Net sales of Honda Atlas Cars during 1HMY25 clocked in at PKR 32,567 million in contrast to PKR 17,727 million in Same Period Last Year (SPLY), depicting an increase of 84% YoY attributable to an increase in sales volumes by 2.1x YoY to 6,633 units vis-à-vis 3,111 units as a result of higher demand and a low base due to plant shutdowns in the same period last year. On a sequential basis, net sales clocked-in at PKR 16,597 million, up by 4% Quarter on Quarter (QoQ).
Gross margins were recorded at 6.9% vs 7.8 in same period last year.
Other income of Honda Atlas Cars declined by 76% YoY to clock in at PKR 429 million in 1HMY25, which is mainly because of reduction in cash and cash equivalent during the period under review, according to the analysts at Arif Habib Limited.
Finance cost increased by 2.9x YoY to clock in at PKR 480 million in 1HMY25 in contrast to PKR 164 million during the same period last year, primarily due to increase in short-term borrowings. However, on QoQ basis, finance costs declined by 11% due to decline in interest rates.
The company booked effective taxation at 43% in 1HMY25 vis-à-vis 54% in same period last year.
