Atlas Honda Reports Substantial Growth Amid Economic Improvement in Pakistan

Karachi: Atlas Honda Limited presented its unaudited financial results for the quarter ended June 30, 2024, showcasing a notable improvement in its financial metrics. The company recorded net sales of Rs. 47.4 billion, a 44% increase from the previous year, and a profit after tax of Rs. 3.5 billion, marking a 116% increase year-over-year.

Pakistan’s economy has demonstrated signs of stabilization and growth, with a GDP increase to 2.4% in FY 2024, primarily driven by robust agricultural outputs and an improved external account balance. This economic rebound is attributed to the government’s strategic policy implementations and ongoing discussions with the IMF, aiming to secure a new $7-8 billion funding program.

According to information available from the Pakistan Stock Exchange (PSX), Atlas Honda benefited from favorable macroeconomic conditions, including stable exchange rates and material costs, which significantly boosted its gross profit to Rs. 4.6 billion. Sales and marketing expenses rose by 26% to Rs. 0.9 billion, reflecting increased volumes and promotional activities.

The fiscal landscape also showed improvements, with the Federal Board of Revenue exceeding its target by collecting Rs. 9.3 trillion, aided by increased income tax and import duties. This fiscal enhancement, coupled with a historic peak in the PSX 100 index, reflects a growing investor confidence in the market’s stability and potential.

Looking forward, Pakistan’s economic outlook appears promising with the anticipated easing of import restrictions and ongoing support from international financial partners. Atlas Honda remains optimistic about sustaining its growth trajectory through strategic initiatives and strong industry partnerships, particularly with Honda Motor Company Limited.