Karachi, July 24, 2024 – Honda Atlas Cars Pakistan Limited announced a remarkable financial performance for the first quarter ended June 30, 2024, reporting a 40% increase in profit.
The company’s profit for the quarter reached Rs 202.63 million, significantly higher than the Rs 144.96 million recorded in the same quarter of the previous year. According to financial statements released to the Pakistan Stock Exchange (PSX) on Wednesday, Honda Atlas Cars’ earnings per share (EPS) rose to Rs 1.42, compared to Rs 1.02 in the corresponding period last year.
The notable increase in profit is largely attributed to a substantial rise in sales. During the first quarter, the company’s sales soared to Rs 15.97 billion, marking a staggering 324% increase from Rs 3.77 billion in the same period last year. This surge in sales translated into a gross profit of Rs 1.01 billion for the quarter, compared to a gross loss of Rs 148.4 million in the previous year’s quarter. The gross margins stood at 6.3% for the quarter.
Despite the positive financial performance, Honda Atlas Cars experienced a significant rise in administrative expenses, which climbed by 44% to Rs 392.15 million from Rs 271.92 million in the same period last year. Additionally, the company’s other income saw a sharp decline of nearly 62%, dropping to Rs 343.77 million from Rs 902.69 million in the previous year’s quarter.
The automaker’s finance costs also surged, increasing by 557% to Rs 287.09 million, up from Rs 43.67 million in the same quarter last year. This increase in finance costs is primarily due to higher interest rates during the period.
Despite these challenges, Honda Atlas Cars managed to achieve a profit before taxation (PBT) of Rs 383.3 million, marking a 43% year-on-year increase.
Honda Atlas Cars Pakistan Limited, incorporated as a public limited company in 1992, began its commercial operations in 1994. The company is a joint venture between Honda Motor Co., Ltd., Japan, and the Atlas Group of Companies, Pakistan. It is engaged in the assembly, progressive manufacturing, and sale of Honda vehicles and spare parts.
As Honda Atlas Cars continues to navigate the complexities of the automotive market, this robust quarterly performance highlights its resilience and strategic growth. The significant rise in sales and profitability underscores the company’s strong market position and its ability to capitalize on growing demand.