July 30, 2026 (MLN): Atlas Honda Limited (PSX: ATLH) reported a robust 25% increase in its net profit for the quarter ended June 30, 2026, reaching Rs6.02bn compared to Rs4.81bn in the corresponding period last year.
Reflecting this strong bottom-line expansion, the company's basic and diluted earnings per share (EPS) jumped to Rs48.48 from Rs38.74 in SPLY.
The primary driver of this profit surge was a powerful top-line expansion combined with a sharp rise in secondary income.
ATLH’s net sales posted a stellar 31% year-on-year increase, rising to Rs81.54bn from Rs62.28bn.
Although the cost of sales grew at a slightly faster pace of 33% (settling at Rs72.17bn), the sheer volume of revenue expansion allowed the company to secure a strong 20% growth in its gross profit, which climbed to Rs9.37bn compared to Rs7.82bn in the prior year.
On the operational front, overheads grew to support the higher sales volume.
Sales and marketing expenses rose by 32% to Rs1.54bn, while administrative expenses increased by 34% to Rs401.71m.
The company also faced a 41% spike in other operating expenses (Rs500.14m).
However, these rising overheads were heavily buffered by a 50% surge in "other income," which brought in a massive Rs2.68bn compared to Rs1.78bn in SPLY.
Supported by these secondary gains, operating profit expanded by 23% to Rs9.63bn.
Below the operating line, finance costs remained negligible relative to earnings, though they did increase to Rs78.86m.
Propelled by top-line volume gains and surging other income, the profit before income tax expanded by 23% to Rs9.53bn.
The company then absorbed a 19% higher total income tax expense of Rs3.52bn (up from Rs2.95bn). Despite this higher tax burden, Atlas Honda securely closed the quarter with a 25% leap in final net profit, settling at Rs6.02bn.
|
STATEMENT OF PROFIT OR LOSS FOR THE THREE-MONTH ENDED JUNE 30, 2026 (Rs.000) |
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|
Description |
2026 |
2025 |
change % |
|
Sales - net |
81,537,222 |
62,281,291 |
30.9% |
|
Cost of sales |
(72,165,411) |
(54,458,807) |
32.5% |
|
Gross profit |
9,371,811 |
7,822,484 |
19.8% |
|
Sales and marketing expenses |
(1,542,418) |
(1,171,160) |
31.7% |
|
Administrative expenses |
(401,705) |
(298,907) |
34.4% |
|
Other income |
2,678,935 |
1,783,472 |
50.2% |
|
Other operating expenses |
(500,143) |
(354,770) |
41.0% |
|
Share of net profit of an Associate |
20,608 |
15,609 |
32.0% |
|
Operating profit |
9,627,087 |
7,796,728 |
23.5% |
|
Finance costs |
(78,858) |
(34,309) |
129.8% |
|
Profit before levies and income tax |
9,548,229 |
7,762,419 |
23.0% |
|
Minimum tax differential |
(5,815) |
(7,782) |
-25.3% |
|
Final taxes |
(10,343) |
(1,942) |
432.6% |
|
Profit before income tax |
9,532,071 |
7,752,695 |
23.0% |
|
Current tax - for the period |
(3,762,261) |
(3,103,750) |
21.2% |
|
Deferred tax - income |
246,529 |
158,321 |
55.7% |
|
(Income tax subtotal) |
(3,515,732) |
(2,945,429) |
19.4% |
|
Profit for the period |
6,016,339 |
4,807,266 |
25.2% |
|
Earnings per share - basic and diluted (Rupees) |
48.48 |
38.74 |
25.1% |