Karachi: Hinopak Motors Limited has reported a significant surge in its sales and profits for the quarter ending June 30, 2025, signaling a robust recovery in the commercial vehicle market. According to the company's first quarterly report, the total sale of commercial vehicles in the country reached 1,920 units, marking a substantial increase compared to the same period last year.
Hinopak's sales volume for trucks and buses rose to 180 units, a notable improvement from the 76 units sold during the corresponding quarter of the previous year. This increase in sales volume has contributed to a substantial rise in sales revenue, which climbed to Rs. 3.96 billion, up from Rs. 1.92 billion in the same quarter last year.
The company's gross profit also saw a significant improvement, increasing to Rs. 845.56 million from Rs. 224.73 million in the previous year's corresponding quarter. However, the finance cost for the current quarter saw a minor move, rising to Rs. 146.72 million from Rs. 142.89 million. The finance cost was primarily driven by an exchange loss of Rs. 83.43 million and mark-up on short-term borrowings amounting to Rs. 50.33 million.
The profit after tax for Hinopak stood at Rs. 416.82 million, a turnaround from a loss after tax of Rs. 119.69 million in the corresponding quarter of the previous year. This translated to earnings per share of Rs. 16.81, a big move from a loss per share of Rs. 4.83 last year.
According to information available from the Pakistan Stock Exchange (PSX), the current financial performance of Hinopak Motors reflects the improving macroeconomic conditions in the country. The company attributes this growth to several factors, including moderation in inflation, a gradual decline in interest rates, and a relatively stable exchange rate, which have all contributed to a cautiously optimistic business sentiment and improved financing access across industries.
The future outlook presented by the company remains optimistic, with government initiatives on economic development and a stable political climate expected to support further industry growth. Despite challenges such as mandated export targets and unfavorable regulatory duties, the overall business environment shows signs of resilience and gradual recovery.
Management at Hinopak Motors is focusing on operational efficiency, customer-centric strategies, and strategic investments to drive long-term value for stakeholders. The company has expressed gratitude to its parent companies, customers, and the entire Hinopak team for their dedication and commitment during this pivotal period.