Latest news with #Rs5.80
Express Tribune
25-07-2025
- Business
- Express Tribune
Profit-taking hits PSX after strong opening
Listen to article The Pakistan Stock Exchange (PSX) once again succumbed to profit-taking on Thursday as the benchmark KSE-100 index lost early gains to close down by more than 550 points amid caution over futures rollover. The index surged to intra-day high of 139,868 shortly after the opening bell, reflecting investor interest across key sectors. However, the momentum proved short-lived as selling pressure emerged, pulling the index down by midday. Later, the index hit intra-day low at 138,614. Market participants pointed to profit-booking in heavyweight stocks ahead of corporate earnings announcements. At the end of trading, the KSE-100 index settled at 138,692.67, registering a notable loss of 561.69 points, or 0.40%. "Stocks closed bearish amid concerns over expected rupee slide on higher imports and thin remittances," Arif Habib Corp MD Ahsan Mehanti remarked. Additionally, rising inflation, trade bodies' concerns over tax enforcement powers and reports about the IMF refusing a reduction in industrial power tariff drove bearish activity at the PSX, he said. Topline Securities commented that after a strong rally in recent sessions, the local bourse took a step back as investors opted to lock in gains ahead of final days of the rollover week. The KSE-100 index witnessed a volatile session, swinging between intra-day high of 613 points and low of 561 points, before closing at 138,693, down 562 points, it said. The session was marked by a tug of war between bullish sentiment and rollover-induced caution, with market participants leaning towards profit-booking. Amid mounting rollover pressure, Topline projected, choppy movements are likely to persist and selective interest is expected to dictate near-term direction. Fauji Fertiliser, Habib Bank, Engro Holdings, Mari Petroleum and Engro Fertilisers wiped off 506 points from the index. On the flip side, Hub Power, MCB Bank and Systems Limited lent some support, adding 204 points, Topline said. KTrade Securities observed in its market wrap that stocks experienced a negative session as investors again locked in profits near recent highs. Selling pressure emerged later in the day amid caution over futures rollover and the earnings season, both of which are expected to drive increased volatility and keep sentiment in check. Among key laggards of the day were bank, fertiliser and energy stocks, it said. Arif Habib Limited (AHL) reported that stocks experienced yet another session marked by early gains followed by sustained declines. Some 34 stocks advanced while 64 fell, with Hub Power (+2.08%), MCB Bank (+1.22%) and Systems Limited (+1.38%) leading the index gains. On the downside, Fauji Fertiliser (-1.16%), Habib Bank (-2.67%) and Engro Holdings (-1.31%) pulled the market lower, it said. Among corporate news, AHL mentioned, Honda Atlas Cars (-3.87%) reported 1QMY26 earnings per share (EPS) of Rs5.80, up 309% year-on-year (YoY) but below expectations of Rs7.8, driven by a 66% rise in its net sales and 5.5x surge in volumes to 5,682 units. Overall trading volumes decreased to 648.8 million shares compared with Wednesday's tally of 656.6 million. Traded value stood at Rs28.1 billion. Shares of 484 companies were traded. Of these, 182 stocks closed higher, 273 fell and 29 remained unchanged. The Bank of Punjab topped the volumes chart with trading in 113 million shares, rising Rs0.55 to close at Rs13.55. It was followed by Media Times with 37.1 million shares, falling Rs0.25 to close at Rs3.42 and WorldCall Telecom with 28.2 million shares, losing Rs0.02 to close at Rs1.52. Foreign investors sold shares worth Rs533.4 million, the National Clearing Company reported.
Express Tribune
25-07-2025
- Automotive
- Express Tribune
Sales boost drives Honda Atlas EPS to 309%
Gross margins, however, expanded by 3.1 percentage points on the back of a 26% year-on-year fall in cold-rolled coil (CRC) steel prices and 10% weakness in Thai baht against the dollar. PHOTO: HONDA ATLAS Listen to article Honda Atlas Cars Ltd (HCAR) has reported a turnaround in its financial performance for the quarter ended June 2025, with earnings per share (EPS) soaring by 309% year-on-year to Rs5.80. The sharp rise in profitability was primarily driven by a 68% increase in vehicle sales, aided by improved macroeconomic conditions, a rebound in auto financing, and lower interest rates, according to data compiled by Optimus Capital Management. The company's bottom line surged to Rs828 million, reflecting the positive impact of operational efficiencies and a better product mix, noted an auto analyst at Optimus Capital Management, Abdul Rafay. The performance marks a strong start to FY26 for Honda Atlas, though future growth may be tempered by rising regulatory challenges and pressure from used car imports. The company's net sales rose by 66% year-on-year to Rs26.5 billion, while the cost of sales climbed 62% to Rs24.2 billion. Gross margins improved to 8.6%, up from 6.3% in the same quarter last year, supported by better operational efficiency and a favourable product mix. However, despite the solid topline and bottom-line growth, the company did not announce any dividend for the quarter, consistent with its previous payout pattern. Another significant contributor to the company's liquidity position was an income tax refund of Rs2.7 billion, which helped ease its operating cash flows and lowered its tax recoverable to Rs5 billion. Despite its strong quarterly results, Honda Atlas faces considerable headwinds in the near term. Analysts at Optimus Capital maintained a 'neutral' stance on the stock, citing several policy and market-related concerns. Firstly, the lifting of restrictions on commercial imports of used vehicles is expected to weigh on new car demand, particularly in the mid-range category where Honda operates. Secondly, the introduction of new compliance requirements, such as the FBR's eligibility certificate and the imposition of the New Energy Vehicle (NEV) levy, is likely to add complexity and cost pressures to the auto business. Thirdly, the decline in cotton cultivation and unpredictable rainfall patterns are negatively impacting rural demand, traditionally a key segment for car sales in Pakistan. Fourth, the company's trade and other payables rose 21% quarter-on-quarter to Rs2.6 billion, possibly reflecting increased order bookings or stretched payment cycles, though detailed accounts for clarity are awaited. Looking ahead, the company is banking on the launch of its new electric hybrid SUV, the E-HRV, to capture market share in the growing SUV segment and partially offset pressure from imported vehicles. While Honda Atlas has benefited from a short-term macroeconomic stabilisation and a rebound in consumer financing, sustained growth will depend on policy clarity, competitive pricing, and broader sectoral recovery. Honda Atlas posted an impressive quarterly recovery, but mounting regulatory, import, and rural demand challenges could slow momentum in the coming quarters.
