Honda Atlas Sees Massive Growth as Earnings Soar 3.5x in MY25
The profitability of Pakistan’s automobile sector is surging, with major players like Indus Motor Company (INDU) and Honda Atlas Cars (HCAR) reporting significant earnings growth. A report by AKD Securities Limited highlights that increased sales volumes and better gross margins are driving this upward trend. INDU, in particular, is expected to post a remarkable earnings jump for the second quarter of FY25, reaching PkR4.7 billion—2.7 times higher than the PkR1.7 billion recorded in the same period last year. This rise is largely due to a 2.4 times increase in sales, with the inclusion of Corolla Cross contributing to the boost.
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HCAR Reports PkR498 Million Earnings, Marking Strong Year-on-Year Growth
Meanwhile, Honda Atlas Cars is also experiencing substantial growth. HCAR’s earnings for the third quarter of MY25 are projected to hit PkR498 million, marking a 3.5 times increase year-on-year. The company’s topline is expected to expand by 50% to PkR18.6 billion, fueled by a 57% rise in sales volumes. Improved gross margins, largely due to lower raw material costs and an increased share of Civic sales, are further strengthening profitability. However, HCAR’s other income is expected to decline due to reduced short-term investments.
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Industry analysts remain optimistic about both companies, with the report maintaining a ‘BUY’ recommendation for INDU and HCAR. The projected target prices for December 2025 suggest further growth potential, reinforcing confidence in Pakistan’s auto sector as sales momentum continues. PPI
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