HINO Q1 profit halves to Rs209m

July 28, 2026 (MLN): Hinopak Motors Limited (PSX: HINO) reported a 50% decline in its net profit for the first quarter ended June 30, 2026 , recording Rs209.69m compared to Rs416.82m in the corresponding period last year.

Reflecting this bottom-line contraction, the company's basic and diluted earnings per share (EPS) halved to Rs8.45 from Rs16.81 in SPLY.

The dip in earnings was primarily triggered by a double-digit drop in top-line revenue. HINO’s revenue from contracts with customers posted a 17% year-on-year decrease, falling to Rs3.28bn from Rs3.96bn.

Although the company managed to reduce its cost of sales by 12% to Rs2.73bn, the revenue contraction outpaced direct production cost savings. Consequently, the company's gross profit contracted by 36%, settling at Rs544.44m compared to Rs845.56m in the prior year.

On the operational front, overheads crept up moderately.

Distribution costs rose by 11% to Rs126.64m, while administrative expenses increased by 8% to Rs126.93m.

The company received a slight cushion from a 62% surge in "other income" to Rs49.77m, a 46% drop in "other expenses" to Rs18.52m, and a minor reversal of impairment on trade receivables and deposits of Rs503,000.

Nevertheless, the heavy drop in gross margins dragged profit from operations down by 47% to Rs322.63m.

Below the operating line, HINO found significant relief in its debt servicing, as finance costs dropped by 51% to Rs71.34m from Rs146.72m in SPLY.

After accounting for a 19% lower minimum tax levy of Rs42.72m, the profit before income tax stood at Rs208.57m.

The company recorded a minor tax credit of Rs1.12m for the period, leaving Hinopak Motors Limited to close the first quarter with its final net profit contained to Rs209.69m.