Honda Atlas Cars profit rises 16% to Rs2.7bn

KARACHI: Honda Atlas Cars Pakistan Limited (HCAR) reported a net profit of Rs2.7 billion (EPS: Rs18.97) for the year ended March 31, 2025, marking a 16 per cent year-on-year (YoY) increase and surpassing industry expectations, according to data shared by brokerage firm Topline Securities.

The company also announced a final cash dividend of Rs8 per share.The company’s fourth quarter earnings surged 23 per cent YoY to Rs1.7 billion (EPS: Rs11.78), also reflecting a nearly threefold jump quarter-on-quarter (QoQ). The earnings boost was largely driven by improved gross margins of 10.1 per cent, exceeding expectations of 9.0 per cent, and significantly higher than 8.4 per cent in the same period last year.

Net sales rose 11 per cent YoY and 55 per cent QoQ to Rs27.7 billion in Q4, fuelled by increased vehicle sales, 5,692 units compared to 5,044 in same period last year and 3,736 in Q3.

Distribution expenses increased by 43 per cent YoY in Q4 due to higher volumes, while other income more than doubled YoY to Rs370 million, supported by a rise in cash holdings.The company recorded a tax refund of Rs214 million, raising its effective tax rate to 17.3 per cent versus 15.2 per cent in the prior year.