Karachi: Hinopak Motors Limited has reported a noteworthy improvement in its financial performance for the half year ending September 30, 2025, as per the results approved by its Board of Directors during a meeting held on November 26, 2025. Despite not declaring any cash dividends or bonuses, the company showcased a robust financial recovery.
The company's total assets increased to 11.35 billion rupees from 10.57 billion rupees as of March 31, 2025. Non-current assets slightly decreased to 3.72 billion rupees, driven by declines in property, plant, and equipment and intangible assets, whereas current assets rose to 7.63 billion rupees, primarily due to a significant increase in inventories and trade receivables.
Equity rose to 5.99 billion rupees from 5.45 billion rupees, indicating a strengthened financial position. The company's liabilities also saw an increase, with total liabilities reaching 5.36 billion rupees, up from 5.12 billion rupees. This was largely due to a rise in short-term borrowings, which climbed to 1.46 billion rupees from 591.82 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), Hinopak Motors Limited's revenue from contracts with customers surged to 6.92 billion rupees for the half year ended September 30, 2025, compared to 4.62 billion rupees in the same period last year. This represents a very large or significant move. The company's gross profit more than doubled to 1.32 billion rupees from 614.86 million rupees, while operating profit increased to 881.10 million rupees, up from 225.41 million rupees in the previous year.
The company's profit before income tax reached 575.23 million rupees, a substantial improvement from a loss of 62.04 million rupees in the previous year. After accounting for income tax expenses, the profit after income tax stood at 540.28 million rupees, a stark contrast to the loss of 47.24 million rupees reported in the previous year. Earnings per share rose to Rs. 21.78 from a loss of Rs. 1.90, underscoring the company's financial rebound.
In terms of cash flow, the company experienced a net cash outflow from operating activities amounting to 957.66 million rupees, a reversal from the net cash inflow of 1.81 billion rupees in the previous year. This was attributed to a cash used in operations totaling 687.52 million rupees. Investing activities saw a slight net cash outflow of 25.37 million rupees, primarily due to the purchase of property, plant, and equipment. Cash and cash equivalents at the end of the period were recorded at a negative 1.41 billion rupees, compared to a negative 295.96 million rupees at the end of the same period last year.
Hinopak Motors Limited's financial results reflect a significant turnaround, showcasing its resilience and recovery amidst challenging market conditions. The reported figures highlight the company's strategic approach to bolster its revenue and profitability, despite facing cash flow challenges.