Karachi: INDU and Honda Atlas Cars (HCAR) are poised to report substantial year-over-year growth in earnings, as per recent forecasts. INDU is expected to post a 55% increase in earnings for the fourth fiscal quarter, driven largely by robust other income and sales, particularly from the Corolla Cross. HCAR also anticipates a significant rise in first-quarter earnings due to a dramatic surge in sales volume.

According to AKD Securities Limited, INDU’s earnings per share (EPS) for the fourth fiscal quarter are projected at PKR 75.5, up from PKR 56.6, reflecting a 55% increase compared to the same period last year. This growth is attributed to a 72% rise in other income, primarily from higher short-term investments, and a 24% increase in topline revenue due to new product sales. Operating expenses are expected to jump significantly due to heightened advertising efforts.

For HCAR, the expected first-quarter EPS is PKR 2.0, nearly doubling from PKR 1.0 in the same quarter last year. The forecasted growth in earnings stems from a 334% increase in sales to PKR 16.4 billion, supported by improved stability in currency and commodity prices which have eased supply chain constraints. However, other income for HCAR is anticipated to drop dramatically, influenced by a decrease in short-term investments and customer advances.

Both companies have adjusted their financial strategies in response to market conditions, with INDU proposing a final dividend of PKR 45 per share for the fiscal year, culminating in a total annual dividend of PKR 116.7 per share. Despite these positive projections, AKD Securities Limited maintains a "Sell" stance on HCAR with a target price of PKR 320 per share for June 2025, citing potential challenges ahead.