Honda Pakistan, one of the country’s leading car manufacturers, has reported a solid financial performance for the year ending March 31, 2025. The company’s profits grew by a healthy 16%, showing strong signs of recovery and growth in Pakistan’s automobile sector.
Honda Pakistan – Profit Highlights:
- Profit after tax: 2.7 billion (up from Rs. 2.3 billion last year)
- Earnings per share (EPS): 18.97, compared to Rs. 16.34 last year
- Sales revenue: 78.06 billion, a big jump from Rs. 55.07 billion (up 42%)
- Gross profit: 6.7 billion, rising by 48%
- Final dividend: 8 per share (which is 80% of the share price)
- Profit before tax (PBT): 3.27 billion, up 19% year-on-year
What Led to This Growth?
The main reason for Honda Atlas’s improved profitability was a sharp increase in car sales. In 2025, the company generated Rs. 78 billion in sales, which is 42% more than last year. This means more people are buying Honda cars in Pakistan, showing growing trust and demand for the brand.
Although the company’s costs also rose—cost of sales increased by 41%—the sales growth outpaced these costs. This led to an improved gross profit and better gross margins. The gross margin slightly improved from 8.2% last year to 8.5% this year, showing efficient cost management despite higher expenses.
However, the company also experienced an increase in administrative expenses by 28%, reaching Rs. 1.9 billion. On the other hand, other income (like investment returns) dropped significantly by 56%, which slightly limited the overall profit growth.
Another positive sign was a 15% reduction in finance costs, which means Honda Atlas is spending less on loans or borrowing costs compared to last year.
What This Means for You
If you’re a potential car buyer, the growing sales numbers and profits of Honda Atlas indicate that the company is doing well in delivering products people want and trust. The company’s healthy financials also mean it can continue investing in better technologies and services, which could benefit customers in the long run.
For investors, the rise in earnings per share and declared dividends make Honda Atlas an attractive option for those looking at the automobile sector in Pakistan.
Overall, the positive financial results reflect a strong future for Honda Atlas Cars Pakistan, driven by increasing customer demand and steady business management.
