Karachi, Indus Motor Company and Honda Atlas Cars are set to report significant increases in their upcoming quarterly earnings, as per forecasts by AKD Securities Limited. Indus Motor is expected to announce a 95% increase in its third-quarter earnings for FY24 on April 26, while Honda Atlas anticipates a more than fourfold rise in its fourth-quarter earnings next month.

According to AKD Securities Limited, Indus Motor Company's earnings for the third quarter of FY24 are projected to reach PkR3.4 billion, nearly doubling from PkR1.7 billion in the previous quarter. This surge is driven by a 2.4x increase in sales volumes, totaling 6,503 units, thanks to the new-year effect and the launch of the Corolla Cross. The company's revenue is expected to see a 2.5x rise quarter-over-quarter to PkR46.1 billion. Gross margins are also expected to improve, partially due to a slight appreciation of the Pakistani rupee. Additionally, a 7% quarterly increase in other income to PkR2.7 billion is anticipated, due to higher short-term investments.

Honda Atlas Cars, on the other hand, is expected to report earnings of PkR626 million for the fourth quarter of FY24, up from PkR143 million in the prior quarter. This increase is attributed to a 95% rise in sales volumes, totaling 4,624 units, spurred by the new-year effect. Honda's revenue for the quarter is expected to climb to PkR24.7 billion, nearly doubling from the previous quarter, with estimated gross margins improving to 8.8%. However, other income is projected to see a significant decline by 77% quarter-over-quarter due to reduced cash and equivalents.

Both companies are anticipated to announce dividends alongside their results, with Indus Motor expected to declare a first-quarter cash dividend of PkR26.0 per share and Honda Atlas a cash dividend of PkR3.0 per share.