KARACHI: Hinopak Motors Limited reported a sharp decline in profitability for the quarter ended June 30, 2026, as lower vehicle sales weighed on the company’s earnings despite improved finance costs and higher other income. The company released its unaudited financial results following a Board of Directors meeting held on July 28, 2026.

The commercial vehicle manufacturer posted a profit after tax of Rs209.69 million, down nearly 50% from Rs416.82 million recorded in the corresponding quarter last year. Consequently, earnings per share (EPS) fell to Rs8.45, compared with Rs16.81 in the same period of 2025.

Revenue from contracts with customers declined to Rs3.28 billion from Rs3.96 billion a year earlier, reflecting softer business activity. Gross profit also contracted to Rs544.44 million, compared with Rs845.56 million in the corresponding period, as lower sales volumes impacted margins.

Operating profit stood at Rs322.63 million, down from Rs613.44 million last year. However, the company benefited from a significant reduction in finance costs, which dropped to Rs71.34 million from Rs146.72 million, while other income increased to Rs49.77 million, partially offsetting the impact of weaker operating performance.

On the financial position side, total assets decreased to Rs9.85 billion as of June 30, 2026, from Rs11.57 billion at the end of March 2026. Shareholders’ equity improved to Rs6.27 billion, supported by retained earnings generated during the quarter, while current liabilities declined due to lower short-term borrowings and trade payables.

The company’s cash flow also showed notable improvement. Hinopak generated net cash from operating activities of Rs1.53 billion, reversing an operating cash outflow of Rs1.44 billion in the same period last year. The improvement was primarily driven by stronger cash generation from operations and reduced working capital requirements.

The Board of Directors did not recommend any cash dividend, bonus shares, or right shares for the quarter ended June 30, 2026.

While Hinopak remained profitable during the quarter, the substantial decline in revenue and earnings highlights the challenging market environment facing Pakistan’s commercial vehicle sector. Investors will be closely monitoring demand recovery and future order inflows to assess the company’s performance in the coming quarters.