Atlas Honda Limited (PSX: ATLH) has reported a remarkable 75% increase in profit for the nine months ending December 31, 2024, highlighting the company’s strong financial performance and market growth.

Financial Highlights

The company’s profit after tax (PAT) surged to Rs. 10.6 billion, significantly higher than the Rs. 6 billion reported in the same period last year. This impressive growth resulted in an Earnings Per Share (EPS) of Rs. 85.84, compared to Rs. 49.01 in the corresponding period.

Atlas Honda also reported a 27% increase in net sales, reaching Rs. 146.8 billion, driven by strong demand and an optimized product mix.

Factors Behind the Growth

The company’s gross profit rose by 79%, reaching Rs. 14 billion, primarily due to:

  • Higher sales volume and an improved sales mix
  • Stable exchange rates, reducing production cost fluctuations
  • Efficient treasury operations, which contributed Rs. 7.37 billion to the bottom line—a 18% increase compared to last year

Rising Expenses and Strategic Investments

While revenue and profitability grew significantly, the company also faced rising expenses:

  • Sales and marketing expenses increased 22.5% to Rs. 2.8 billion, largely due to inflation and promotional campaigns
  • Administrative expenses climbed 24% to Rs. 799.7 million, reflecting investments in corporate social responsibility (CSR) initiatives and inflationary pressures

Stock Market Performance

At the time of reporting, Atlas Honda’s share price on the Pakistan Stock Exchange (PSX) stood at Rs. 873.29, marking an increase of Rs. 79.39, with a turnover of 63,379 shares on Thursday.

Future Outlook

Atlas Honda’s impressive financial growth reflects strong consumer demand, effective cost management, and a favorable market environment. With a focus on expanding its motorcycle lineup, improving operational efficiency, and leveraging stable economic conditions, the company is well-positioned for continued success in the coming quarters.

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