Honda Cars reports strong profit growth for December quarter
HRV hybrid to strengthen HCAR's market share in the growing SUV segment
Business Desk
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Honda Atlas Cars (HCAR) in Pakistan has reported a significant increase in profitability for the quarter ended December 31, 2024.
The company posted a Profit After Tax (PAT) of PKR 566 million, or PKR 3.97 per share, marking a 3.9-fold increase compared, according to a notice sent to stock exchange.
The robust earnings growth is attributed to a 44% year-on-year surge in volumetric sales and improved gross margins. Sales revenues for the quarter rose by 43.5% to PKR 17.8 billion, compared to PKR 12.4 billion in the same period last year.
Analysts highlight several factors behind the company's improved net margin, including a stable PKR/USD exchange rate, eased trade restrictions, and reduced distribution costs.
Market analysts maintain a positive outlook on HCAR, citing anticipated volume growth as interest rates have decreased sharply. HCAR also benefits from a higher sales mix from auto-financing. Additionally, the upcoming launch of the HRV hybrid is expected to strengthen HCAR's market share in the growing SUV segment.
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