HCAR | Honda Atlas Cars (Pakistan)

HCAR | Honda Atlas Cars (Pakistan) | Q2-Sep25 Financial Results update

EPS (Q2) Rs. 5.2
No cash dividend was declared for Q2.

EPSttm: Rs. 26.7
Cash Dividend (ttm) Rs. 8 per share

PAT (Q2) Rs. 742mn, ▲ 187.7% yoy, ▼ -11.0% over avg of last 4 qrts
Profit after Tax includes Other Income Rs 567mn. Finance Income Rs 1413mn

PBT (Q2) Rs. 1,122mn, ▲ 207.5% yoy, ▲ 3.1% over avg of last 4 qrts

Revenue (Q2) Rs. 25,418mn, ▲ 53.1% yoy, ▲ 14.8% over avg of last 4 qrts
Gross profit (Q2) Rs. 1,920mn, ▲ 57.3% yoy, ▼ -3.1% over avg of last 4 qrts

Gross profit margin 7.6%, compared to an average of 8.8%, for the last four quarters.
Tax rate 33.9%, compared to an average of 40.5%, for the last four quarters.

The annual increase was mainly supported by higher volumetric sales and better margins driven by lower CRC/HRC prices. However, overall earnings still fell short of expectations due to weaker gross margins in the quarter.

Administrative and distribution expenses rose 47% YoY to PKR 911mn, likely reflecting higher advertising and promotional spending for the new HRV variants.

Other income jumped to PKR 495mn — a 5.8x YoY increase — supported by a 60% rise in cash and cash equivalents, which stood at PKR 1.5bn as of Sep’25.

Financial charges increased 63% YoY to PKR 315mn, possibly due to the discounting of long-term trade receivables, though further clarification is awaited.

Honda Atlas Cars is a subsidiary of Honda Motor Co., Ltd., Japan. The Company’s principal activities are assembling and progressive manufacturing and sale of Honda vehicles and spare parts. The Company commenced commercial production from July 1994.

M/s. Honda Motor Company Ltd. own 51% and M/s. Shirazi Investments (Pvt) Limited own 30% of HCAR.

Maket Cap: 145 $mn

HCAR: Brief Technical Analysis:
Last closing Rs. 285.4▼ 10EMA.
10EMA: 286.2 is ▼ 20EMA: 288.6
Volume is very strong.

https://dps.psx.com.pk/download/document/266028.pdf

https://dps.psx.com.pk/company/HCAR