{"id":10175,"date":"2025-07-23T12:36:07","date_gmt":"2025-07-23T07:36:07","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10175"},"modified":"2025-07-23T12:36:10","modified_gmt":"2025-07-23T07:36:10","slug":"earnings-preview-can-honda-atlas-hcar-turn-things-around","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/earnings-preview-can-honda-atlas-hcar-turn-things-around\/","title":{"rendered":"Earnings preview: can Honda Atlas (HCAR) turn things around?"},"content":{"rendered":"\n<p><strong>Honda Atlas Cars (<a href=\"https:\/\/ksestocks.com\/blog\/tag\/hcar\/\" data-type=\"post_tag\" data-id=\"170\" target=\"_blank\" rel=\"noreferrer noopener\">HCAR<\/a>) <\/strong>is expected to post earnings of <strong>Rs6.5 per share in 4QFY25<\/strong>, a sharp <strong>44% drop<\/strong> compared to the same quarter last year.<\/p>\n\n\n\n<p>But not everything is gloomy, <strong>car sales volumes are up 68% YoY<\/strong>, showing that customer demand remains strong.<\/p>\n\n\n\n<p>So what\u2019s causing the dip in profits?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The rupee factor<\/h2>\n\n\n\n<p>The weakening of the Pakistani Rupee against major currencies like the Japanese Yen (JPY), Thai Baht (THB), and US Dollar (USD) has pushed up <strong>import costs<\/strong> for Honda. Since many parts are imported, even a small currency fluctuation can hurt margins.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Margins under pressure<\/h2>\n\n\n\n<p>Gross margins are expected at <strong>6.8%<\/strong> in 4QFY25, well below historical levels. High raw material costs and freight charges are squeezing profits, even as the company manages to sell more units.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Hybrids still a strong bet<\/h2>\n\n\n\n<p>Despite the margin pressure, Honda&#8217;s hybrid models are well-positioned in Pakistan&#8217;s shifting auto market. With rising fuel costs and growing interest in eco-friendly cars, HCAR&#8217;s hybrid offerings give it an edge, especially if currency stability returns in the coming quarters.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Looking ahead<\/h2>\n\n\n\n<p>While the drop in EPS may raise eyebrows, the real story is in Honda\u2019s <strong>resilient sales and hybrid potential<\/strong>. If the Rupee holds steady and input costs ease, HCAR could bounce back stronger in FY26.<\/p>\n\n\n\n<p><strong>Summary:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>EPS (Expected): Rs6.5<\/strong> in 4QFY25 \u2193 44% YoY<\/li>\n\n\n\n<li><strong>Sales Volumes:<\/strong> \u2191 68% YoY<\/li>\n\n\n\n<li><strong>Gross Margin:<\/strong> 6.8%<\/li>\n\n\n\n<li><strong>Headwinds:<\/strong> PKR depreciation, high input costs<\/li>\n\n\n\n<li><strong>Tailwinds:<\/strong> Hybrid lineup, strong demand<\/li>\n<\/ul>\n\n\n\n<p>Stay tuned, this might just be a temporary speed bump for Honda Atlas.<\/p>\n\n\n\n<p><strong>Source: Foundation Securities <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Honda Atlas Cars (HCAR) is expected to post earnings of Rs6.5 per share in 4QFY25, a sharp 44% drop compared to the same quarter last year.<\/p>\n","protected":false},"author":9252,"featured_media":6763,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[170],"class_list":["post-10175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-hcar"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/HCAR-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/HCAR-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/HCAR-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/HCAR-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10175"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10175\/revisions"}],"predecessor-version":[{"id":10176,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10175\/revisions\/10176"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6763"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}