Atlas Honda Limited, one of Pakistan’s most well-known motorcycle manufacturers, has reported a remarkable 57.1 per cent jump in its profit after tax for the financial year ending March 31, 2025.
The company’s profit reached Rs15.25 billion, or Rs122.91 per share, compared to Rs9.71 billion (Rs78.45 per share) last year.
As a reward for this strong performance, Atlas Honda has declared a final cash dividend of Rs42 per share, in addition to the Rs32 per share interim dividend. This brings the total dividend for the year to a hefty Rs74 per share, or 740 per cent.
Sales for the year saw a healthy 28 per cent increase, reaching Rs203.89 billion, up from Rs159.29 billion in FY24. A major factor behind this growth was the impressive 81.4 per cent rise in the company’s gross profit, which soared to Rs22.18 billion, up from Rs12.23 billion last year.
Although the cost of sales climbed by 23.6 per cent, totalling Rs181.71 billion (compared to Rs147.07 billion in FY24), the company’s strong sales helped offset these rising costs, leading to a significant increase in profits.
The company also saw higher operating expenses, with sales and marketing costs going up by 20.7 per cent to Rs4.41 billion, and administrative expenses rising by 21.7 per cent to Rs1.31 billion.
Other income increased slightly by 1.45 per cent, reaching Rs9.19 billion, adding to the overall positive results.
Atlas Honda also enjoyed a remarkable 338 per cent rise in profit from its associate, reaching Rs54.64 million, compared to just Rs12.48 million last year, giving a further boost to its bottom line.
While other operating expenses rose by 69.3 per cent to Rs1.25 billion, this was more than offset by a strong 54.5 per cent increase in operating profit, which grew to Rs24.47 billion from Rs15.84 billion last year.
The company’s finance costs went up by 22.9 per cent to Rs125.49 million, mainly due to higher interest rates. However, the impact of these increased costs was more than outweighed by the surge in sales and profitability.
On the tax side, Atlas Honda paid Rs8.38 billion in current taxes, reflecting a 73.3 per cent increase compared to Rs4.84 billion in FY24. The company also recognised Rs8.8 billion in deferred tax expenses, a 58.2 per cent increase from last year.
