Karachi: The condensed interim financial statements for Honda Atlas (Pakistan) Limited, presented for the quarter ending June 30, 2024, reveal a substantial improvement in financial performance, reflecting the resilience and recovery of Pakistan's economy. According to information available from the Pakistan Stock Exchange (PSX), the Company recorded a significant rise in net sales and profits compared to the same period last year.

The Pakistan economy has demonstrated signs of robustness, with GDP growth accelerating to 2.4% in FY 24 from a mere 0.3% in the previous year, driven by strong agricultural outputs, an improved current account balance, and lowered inflationary pressures. These economic gains have been buoyed by the government's adept policy management and successful negotiations with the International Monetary Fund for a new three-year financial support program anticipated between $7-8 billion.

Honda Atlas reported a net sale of PKR 15,970 million during the three months ended June 30, 2024, a significant increase from PKR 3,771 million in the corresponding period last year. The Company achieved a gross profit of PKR 1,012 million, recovering from a gross loss of PKR 148 million a year earlier. Despite higher operational costs, the stability in the USD-PKR exchange rate and controlled financial charges contributed to a profit before tax of PKR 383 million, up from PKR 268 million in the previous year.

The automotive sector, where Honda Atlas operates, has seen a rebound with the Company's vehicle production escalating to 3,340 units from just 305 units and sales surging to 3,285 units from 600 units in the year-ago period. This recovery is attributed to improved economic conditions, although challenges such as increased input costs and regulatory changes persist.

Looking forward, the Company is optimistic about Pakistan's economic trajectory. Initiatives like the Special Investment Facilitation Council aim to attract investments and boost industrial activity, with agriculture and manufacturing sectors showing promising signs of sustained growth.

In acknowledgment of the company's progress and the supportive economic environment, the Chairman extended gratitude to Honda Motor Company, the management team, and stakeholders for their enduring support and commitment to excellence.