Lahore (National Times) For the local car industry, the last couple of years, especially after the pandemic and the recent economic meltdown, were full of crisis. Historic low sales led to depressed profit volumes. But the local assemblers and enthusiasts were hopeful that the whammy would conclude soon. Interestingly, the recent update reports the same.
The Surge in Profit
In its financial statement available at the Pakistan Stock Exchange, Honda Atlas Cars Limited (HCAR) posted a 40% jump in its after-tax profit, reaching Rs. 202.63 million in the quarter closed on June 30 of the financial year 2024-25 against Rs. 144.96 million reported in the corresponding period of the previous year.
The reason behind the said uptick in profit is a whopping 324% increase in sales, clocking at Rs. 15.97 billion in contrast with 3.77 billion in the quarter. This simply means that the company observed a gross profit of Rs. 1.01 billion in the first quarter of MY25.
HCAR’s financial performance was mixed in the first quarter of the fiscal year 2024-25. While the company achieved a 43% year-on-year increase in Profit before Taxation (PBT) to Rs383.3 million, it faced several challenges.
Sales Report
Coming to month-on-month sales, Honda Atlas witnessed a decrease of 8%, selling 1,097 units last month compared to 1,187 units in May 2024. The company sold 982 units of City and Civic, and 113 units of BR-V.
According to the Pakistan Automotive Manufacturers Association (PAMA) report, month-on-month (MoM) car sales surged by 21% last month, selling 13,284 vehicles in June’24 compared to 10,949 vehicles in May 2024.
However, year-on-year (YoY) sales reported a massive growth of 120%. This positive trend can be attributed to the stability of the Pakistani Rupee against the US dollar. Car manufacturers were able to sell 13,284 cars in the reported period, compared to only 6,033 vehicles sold during the same period last year.
What do you think about the increase in the profit of Honda Atlas? Drop your thoughts in the comments section.
