Karachi: Atlas Honda Limited has announced a strong performance for the quarter ending June 30, 2025, with profit before tax reaching Rs. 7.8 billion, a significant increase from the previous year, driven by robust sales and improved economic conditions. The company registered a 38% rise in profit after tax, amounting to Rs. 4.8 billion, translating to earnings per share of Rs. 38.74 compared to Rs. 28.02 in the corresponding period of the previous year.
The company's net sales surged to Rs. 62.3 billion, marking a substantial increase from last year. This growth was attributed to a higher sales volume, an improved sales mix, and decreased input costs. The gross profit stood at Rs. 7.8 billion, up from Rs. 4.6 billion in the same period last year. However, the company also reported a 31% rise in sales and marketing expenses, reaching Rs. 1.2 billion, primarily due to increased volumes and promotional activities. Administrative expenses grew by 25%, driven by inflation and higher personnel costs.
Atlas Honda Limited's performance reflects broader economic trends within Pakistan. The country's economy has shown signs of stabilization and recovery, with GDP growing by 2.7% in the fiscal year. Foreign exchange reserves improved, supported by State Bank market purchases and international partner inflows. The current account recorded a surplus, reversing the previous year's deficit, thanks in part to a surge in worker remittances and a moderate increase in exports. Inflation eased, enabling the Central Bank to reduce the policy rate, and the PSX 100 Index reached a record high.
The agriculture sector posted modest growth, despite challenges in major crop production, while the manufacturing sector, including the motorcycle industry, showed signs of recovery. This recovery was bolstered by strong remittance inflows and rising demand for affordable transportation.
According to information available from the Pakistan Stock Exchange (PSX), the PSX 100 Index's recent performance reflects increased investor confidence amid the country's economic stabilization efforts. The company's strong quarterly results align with the broader trend of economic recovery.
Looking ahead, Atlas Honda Limited anticipates continued growth, supported by ongoing economic reforms and improvements in key sectors such as exports, agriculture, and manufacturing. The motorcycle industry is expected to benefit from increased rural liquidity, higher remittances, and growing demand for personal mobility solutions.
The company acknowledges the support of Honda Motor Company Limited and expresses gratitude to its customers, management team, Board of Directors, CEO, and all stakeholders for their contributions to its success.