Karachi: Hinopak Motors Limited has reported a marked improvement in its financial performance for the year ending March 31, 2026, as revealed in the company's corporate briefing session. The results showcase substantial growth in key financial metrics despite a challenging economic environment characterized by fluctuating exchange rates and rising inflation.
The economic overview of March 2026 compared to March 2025 indicates a minor move in the exchange rate of the Pakistani Rupee against the US Dollar, decreasing from Rs. 281 to Rs. 280. Conversely, the Japanese Yen saw a big move against the US Dollar, rising from JPY 151 to JPY 160. Inflation witnessed a significant rise from 0.7% to 7.3%, while the State Bank of Pakistan's policy rate experienced a moderate move, decreasing from 12% to 10.5%.
Hinopak's financial highlights reveal a significant increase in both turnover and gross profit. Turnover for the period ending March 31, 2026, reached Rs. 11.00 million, up from Rs. 10.34 million in the previous year. Gross profit surged to Rs. 2.05 million from Rs. 1.29 million, driven by improved pricing strategies and favorable exchange impacts, leading to an enhancement in gross profit margins from 12.49% to 18.60%.
Distribution and administration expenses rose to Rs. 1.17 million from Rs. 868,174, while other income increased to Rs. 212,004 from Rs. 178,637. Operating profit more than doubled to Rs. 1.09 million from Rs. 601,979. Finance cost stood at Rs. 237 million for the year ended March 2026, primarily due to short-term borrowings. Profit before taxation and levies soared to Rs. 749,298 from Rs. 320,050, resulting in a profit after tax of Rs. 541,253, a significant increase from Rs. 161,957. Earnings per share rose to Rs. 21.82 from Rs. 6.53, reflecting a very large or significant move.
According to information available from the Pakistan Stock Exchange (PSX), Hinopak's market performance aligns with the overall market growth, which reported an 85% increase in size, from 4,330 units in March 2025 to 8,000 units in March 2026.
On the statement of financial position, total assets increased to Rs. 11.57 million from Rs. 10.57 million, while equity rose to Rs. 6.07 million from Rs. 5.45 million. Long-term liabilities decreased to Rs. 183,672 from Rs. 287,442. Current liabilities increased to Rs. 5.32 million from Rs. 4.83 million, maintaining the balance with total equity and liabilities.
The company invested Rs. 95.16 million in capital improvements during the year to enhance operational efficiency and readiness for future challenges. Hinopak Motors' robust performance amid economic fluctuations underscores its strategic resilience in the competitive automotive sector.