Lahore: Honda Atlas Cars Limited (HCAR) today disclosed its financial results for the first quarter of the fiscal year 2025, revealing a profit after taxation (PAT) of PKR 203 million, an improvement from PKR 145 million in the same period last year. Despite an increase in sales volume, the company’s gross margins did not meet expectations.

According to AKD Securities Limited, the financial performance of HCAR reflected higher sales, with revenues reaching PKR 16.0 billion, up significantly from the previous year, primarily due to increased vehicle sales. However, the anticipated improvement in gross margins did not materialize, registering at 6.3% compared to negative 3.9% in the same quarter last year, affected by various operational challenges including supply chain disruptions leading to multiple days of plant shutdowns.

The report further noted that administrative and distribution expenses rose by 58% year-over-year, driven by inflationary pressures and increased marketing expenditures. Additionally, other income decreased significantly due to a reduction in short-term investments, while financial charges increased markedly due to heightened borrowing in response to rising working capital needs.