HCAR is expected to announce its financial result for the period ended 1QMY25 on 24th July’24, whereby we expect net profit to arrive at PKR 483mn (EPS: PKR 3.4), depicting an increase of 3.3x YoY. The top line is expected to clock in at PKR 18.6bn, up by 5x YoY attributable to an increase in sales volumes by 5.5x YoY to 3,285 vis-à-vis 601 units as a result of higher demand due to increase in consumer purchasing power and a low base due to plant shutdowns in SPLY. Gross margins are expected to improve to 9.35% mainly due to stable exchange rate.

Other income, however, is anticipated to decline by 80% YoY due to decline in cash and cash equivalents. Further, finance costs are anticipated to jump by 8x YoY amid an increase in short term borrowings and higher interest rates.

On a sequential basis, the topline is expected to decrease by 25% QoQ due to a volumetric decline of 35% (4QMY24: 5,044 units).

Courtesy – AHL Research