Karachi, January 22, 2025 – Honda Atlas Cars (Pakistan) Limited has reported an impressive 296% growth in net profit for the quarter ended December 31, 2024, as the company prepares for significant sales to the Federal Board of Revenue (FBR).
According to financial results shared with the Pakistan Stock Exchange (PSX) on Wednesday, Honda Atlas posted a net profit of Rs 566.40 million for the quarter, a substantial rise from Rs 143.25 million during the same period last year. This growth coincides with an impending bulk purchase of vehicles by the FBR, which has drawn significant attention.
The FBR plans to acquire 1,010 Honda City 1.2L CVT vehicles to enhance its operational capabilities. This large-scale procurement is part of the FBR’s broader strategy to strengthen enforcement measures and widen the tax net. These vehicles will be distributed among officers in BS-17 and BS-18 of the Inland Revenue Service (IRS) and Pakistan Customs Service (PCS). The aim is to bolster the FBR’s ability to combat tax evasion while encouraging compliance across non-compliant sectors.
An official Letter of Intent (LoI) has been issued by the FBR to Honda Atlas Cars (Pakistan) Limited, confirming the purchase. However, the deal has temporarily been put on hold due to political controversies surrounding the procurement. Despite this, FBR sources have clarified that the purchase is part of a comprehensive transformation plan that has been approved by all relevant authorities and is expected to move forward soon.
The financial performance of Honda Atlas Cars underscores the company’s resilience and growth amid these developments. The automaker announced earnings per share (EPS) of Rs 3.97 for the quarter, a significant increase compared to Re 1 during the corresponding period last year. Furthermore, total sales surged to Rs 17.84 billion, up from Rs 12.43 billion in the same quarter a year earlier.
This surge in sales and profits reflects the growing demand for Honda vehicles in Pakistan, boosted by both consumer interest and anticipated institutional purchases such as that of the FBR. Market analysts believe that the company’s financial performance positions it well to benefit from upcoming opportunities, provided the FBR deal materializes as planned.
Honda’s success highlights its critical role in Pakistan’s automotive sector, where demand for reliable vehicles continues to grow despite economic challenges.