Honda Atlas Cars (Pakistan) Limited (PSX: HCAR) announced its financial results for 1QMY27, posting a profit after tax (PAT) of Rs. 2,486 million (EPS: Rs. 17.41), up 200 percent year-on-year (YoY) from Rs. 828 million (EPS: Rs. 5.80) in 1QMY26.
Also, PAT was reported up 2.5x quarter-on-quarter (QoQ) from Rs. 1,008 million (EPS: Rs. 7.06) in 4QMY26.
Net revenue rose 41 percent YoY to Rs. 37,202 million in 1QMY27, compared with Rs. 26,462 million in 1QMY26, while remaining broadly flat QoQ against Rs. 37,300 million in 4QMY26.
According to Arif Habib Limited, the YoY growth was driven by a 43 percent increase in volumetric sales to 7,918 units in 1QMY27, compared with 5,520 units in 1QMY26, with City and Civic sales rising to 6,978 units and HR-V/BR-V sales reaching 940 units, versus 5,520 units for City and Civic and 366 units for HR-V/BR-V in 1QMY26.
Gross margins declined to 7.7 percent in 1QMY27 from 8.6 percent in 1QMY26, primarily due to an unfavorable product mix, with the lower-margin Honda City accounting for a larger share of sales than the Honda Civic.
On a QoQ basis, however, gross margins improved marginally from 7.5 percent in 4QMY26.
Other income increased 3.8x YoY to Rs. 2,090 million in 1QMY27 (vs. Rs. 553 million in 1QMY26) and 2.4x QoQ from Rs. 890 million in 4QMY26. The increase was primarily driven by a one-off discounting gain of Rs. 1,590 million recognized after the company entered into a settlement agreement with the Government of Sindh for its SIDC liability, resulting in the long-term portion of the liability being remeasured at its present value using an 11.5 percent discount rate, with the difference recognized as other income.
Finance costs increased 3.1x YoY to Rs. 631 million (vs. Rs. 203 million in 1QMY26), though they declined 33 percent QoQ from Rs. 936 million in 4QMY26, reflecting lower borrowing costs and an increase in the current portion of non-current liabilities.
The effective tax rate stood at 19.4 percent in 1QMY27, compared with 43.3 percent in 1QMY26 and 22.6 percent in 4QMY26.
The post Honda Atlas Delivers Massive 200% Profit Growth in Q1 appeared first on ProPakistani.