Honda Pakistan’s Q1 Profit Up 40% Despite Low Margins

Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) announced its financial result for 1QMY25 today, posting a profit after tax of Rs. 202 million, up by 40 percent year-on-year (YoY) compared to Rs. 144.9 million in the same period last year. The result is lower than expectations due to low gross margins, Topline Securities said in a brief review. The carmaker didn’t announce any dividend payouts to its shareholders for the period in review. Sales during 1QMY25 clocked in at Rs. 15.9 billion in contrast to Rs. 3.7 billion in SPLY, depicting an increase of 324 percent YoY. During the period in review, the gross margin arrived at 6.3 percent. Other income declined by 62 percent YoY to clock in at Rs. 343 billion in 1QMY25. Other expenses were slightly up by 8 percent YoY to clock in at Rs. 33 million in 1QMY25. The company paid Rs. 180.7 million in taxes during the period in review, compared to Rs. 122.7 million in SPLY. HCAR’s earnings per share (EPS) clocked in at Rs. 1.42 compared to an EPS of Rs. 1.02 in the same period last year. At the time of filing, HCAR’s scrip at the bourse was Rs. 281.7, down 1.87 percent or Rs. 5.36 with 802,401 shares on Wednesday.