Karachi (PkRevenue.com) – In a remarkable financial performance, Honda Atlas Cars Pakistan has reported an extraordinary 800 percent surge in annual profit for the fiscal year ended March 2024.
This unprecedented growth is outlined in the company’s financial results submitted to the Pakistan Stock Exchange (PSX) on Monday.
Honda Atlas Cars Pakistan declared a profit after tax of Rs 2.33 billion for the year ending March 31, 2024, a significant leap from the Rs 260 million recorded in the previous fiscal year. This monumental increase has also reflected positively on the company’s earnings per share (EPS), which escalated to Rs 16.34 for 2024, compared to Rs 1.82 in the preceding year.
The company’s board of directors convened in Karachi on May 27, 2024, to review the financial results and subsequently recommended a final cash dividend of 65 percent or Rs 6.5 per share for the year ended March 31, 2024, rewarding shareholders for their trust and investment.
Despite this substantial profit increase, the company reported a decrease in total sales, which stood at Rs 55.07 billion for the year ended March 31, 2024, down from Rs 95.09 billion in the previous year. This decline in sales revenue did not hinder the overall profit growth, indicating effective cost management and strategic financial planning.
The gross profit for Honda Atlas Cars Pakistan was recorded at Rs 4.51 billion for the fiscal year 2024, a decrease from Rs 7.161 billion in the previous year. However, the real turnaround was evident in the company’s management of other expenses. These expenses plummeted to Rs 394 million in 2024 from a staggering Rs 5 billion in the last year. This significant reduction in other expenses was pivotal in driving the overall profit surge.
The remarkable growth in profit can be attributed to several strategic measures implemented by Honda Atlas Cars Pakistan. These include stringent cost-cutting strategies, optimization of operational efficiencies, and a focused approach towards minimizing non-essential expenditures.
Financial analysts have lauded the company’s management for its adept handling of economic challenges and market fluctuations, leading to such an impressive turnaround. The substantial reduction in other expenses has been particularly highlighted as a critical factor in the profit surge.
As Honda Atlas Cars Pakistan continues to navigate through the complexities of the automotive market, this impressive financial performance underscores the company’s resilience and strategic foresight. Shareholders and market watchers will be keenly observing the company’s future moves and their impact on sustained profitability and growth.
The announcement of an 800 percent profit increase not only highlights Honda Atlas Cars Pakistan’s robust financial health but also sets a promising precedent for the upcoming fiscal year.
