AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The automotive industry is witnessing a notable shift in earnings, with INDU expecting significant growth while HCAR faces a decline in profitability. INDU’s anticipated earnings for the third quarter of the fiscal year 2025 are projected to reach PkR5.7 billion, marking a 29% increase year-on-year. This growth is driven by a surge in total sales volumes, which rose by 40% compared to the previous year, as supply chain disruptions eased.
The topline for INDU is expected to rise by 31% year-on-year, buoyed by the full-quarter sales of the Corolla Cross model. While gross margins are projected to remain stable at 14.5%, operating expenses are forecasted to decrease by 58% due to reduced warranty claims. The company’s earnings for the nine-month fiscal year 2025 are expected to grow by 67% year-on-year, with an interim dividend announcement anticipated.
Conversely, HCAR is projected to experience a 17% decline in earnings for the fourth quarter of the fiscal year 2025, primarily due to a one-off tax reversal in the previous year. Despite a 12% increase in total sales volume for the quarter, the company’s overall earnings for the fiscal year 2025 are expected to decline by 8% year-on-year. HCAR plans to announce a final dividend, maintaining a positive outlook with a ‘BUY’ recommendation on its stock.
The automotive industry’s performance reflects the broader economic trends, with varying impacts on key players in the market. Both companies continue to adjust their strategies to navigate the evolving landscape.