Honda Atlas Profits Skyrocketed Reaching Heights of 300%

Wajahat

23 Jan 2025

316

Honda Atlas Profits Skyrocketed Reaching Heights of 300%

The automotive market in Pakistan has seen a series of ups and downs, with sales figures often showing positive results one month, only to decline the next. This inconsistent trend has continued for a prolonged period, yet local car manufacturers, such as Honda Cars Price in Pakistan, continue to post impressive profit figures, even in such turbulent conditions. Honda Atlas has recently revealed its substantial profit growth for the third quarter of MY25, showcasing a significant improvement.

Honda Atlas Profit Surge: A Breakdown of the Numbers

For the third quarter of MY25, Honda Atlas reported a massive profit of Rs. 566 million, which marks a year-on-year (YoY) increase of 2.95 times and a quarter-on-quarter (QoQ) growth of 2.2 times. This remarkable performance has exceeded expectations and positioned Honda Atlas as a strong competitor in a highly competitive market.

In total, for the first nine months of MY25, Honda Atlas reported a cumulative profit of Rs. 1.03 billion, which represents a 7% YoY growth from Rs. 964 million in the same period last year. A key highlight from this period was the increase in gross margin, which rose to 9.2%, surpassing last year's 8.3% and the previous quarter's 7.4%.

Key Factors Driving Profit Growth

Several factors played a crucial role in Honda Atlas' outstanding financial performance. Firstly, net sales witnessed a 44% Year on Year increase, amounting to Rs. 17.8 billion. This surge was driven by a notable rise in vehicle sales, with the company selling 3,736 units in this quarter compared to 2,374 units in the same period last year. Additionally, cost control strategies contributed significantly to these results. Distribution expenses dropped by 20% YoY, and other operating expenses decreased by 72% YoY, thanks to a decline in inflationary pressures.

Challenges Encountered by Honda Atlas

Despite the positive financial outcomes, Honda Atlas faced certain challenges. For example, administrative expenses rose by 15% YoY, and other income declined by 34% YoY, although it rebounded significantly by 2.24 times compared to the previous quarter. Furthermore, the effective tax rate saw an increase, rising to 43% from 37% in the prior year.

Earnings Per Share (EPS) Performance

For the third quarter of MY25, Honda Atlas reported an Earnings Per Share (EPS) of Rs. 3.97, and a cumulative EPS of Rs. 7.19 for the nine months. This consistent growth underscores the company's strong performance and continued resilience in a competitive automotive market.

Honda Atlas Vehicle Sales Update

While Honda Atlas posted impressive profits, the company’s vehicle sales showed minimal change in December 2024, with 1,110 units sold compared to 1,112 units in November 2024. The breakdown of these sales includes 970 units from Honda City and Civic, and 140 units from BR-V and HR-V.

Your Opinion on Honda Atlas' Profit Growth

What are your thoughts on Honda Atlas’ latest profit performance? Share your views in the comments section below!

Honda Atlas Honda Pakistan automotive profits MY25 profit Q3 profit growth Honda sales performance profit surge automotive industry Pakistan Honda Atlas MY25 automotive market Pakistan

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