4 listed automobile companies report losses in Q1

Four listed automobile companies incurred losses during the July-September quarter of the current fiscal year 2024-25, primarily due to sluggish demand, high taxes and increased interest burdens on loans.

The affected companies are Aftab Automobiles, Atlas Bangladesh, Ifad Autos, and Runner Automobiles PLC.

According to their unaudited financial statements for the first quarter of FY25, Aftab Automobiles incurred a loss of Tk4.60 crore, Atlas Bangladesh faced a loss of Tk0.83 crore, Ifad Autos recorded a loss of Tk5.70 crore and Runner Automobiles reported the highest loss at Tk14.17 crore.

Despite the challenging financial performance, the stock prices of some companies have shown mixed trends in recent months.

Aftab Automobiles' shares closed at Tk37.60 today (17 November) on the Dhaka Stock Exchange (DSE), marking a 32% increase since October. Runner Automobiles' shares saw an impressive 55% surge, reaching Tk29.70 in the past month.

Conversely, Atlas Bangladesh's shares dropped by 6%, closing at Tk51.10, while Ifad Autos' stock declined by 7% to Tk22 during the October-November period.

Ifad Autos

Ifad Autos, authorised dealer of Ashok Leyland's vehicle in Bangladesh, reported that its sales revenue dropped by 7% to Tk158 crore year-on-year in the first quarter of FY25.

Due to the foreign currency exchange loss, rising interest payment and high tax payment, it incurred a loss of Tk5.70 crore and the loss per share was Tk0.21 during the quarter.

Earlier, it recommended to pay dividends of 2% — 1% in cash and 1% in stock — due to incurred loss in FY24. In the last fiscal year, its total loss was Tk16.47 crore.

The company has scheduled its annual general meeting (AGM) for 28 December via a digital platform, with the record date set for 18 November to identify shareholders eligible for the declared dividend.

Runner Automobiles

Runner Automobiles — the country's pioneer in motorcycle manufacturing and exporting — has incurred a consolidated loss of Tk14.17 crore in the first three months of the current fiscal year.

The consolidated loss per share of the company stood at Tk0.72 at the end of the September quarter.

According to its consolidated statement for the first quarter, its revenue inched up to Tk177.79 crore.

Earlier, it recommended an 11% cash dividend for general shareholders and a 1% cash dividend for the sponsors and directors for FY24.

Aftab Automobiles

The Hino-branded commercial vehicle seller incurred a consolidated loss of Tk4.60 crore in the first quarter of the ongoing fiscal year. Its loss per share stood at Tk0.44.

Earlier, it recommended a 10% cash dividend only for its general shareholders for the last fiscal year.

During the year, its consolidated loss per share stood at Tk1.41.

Atlas Bangladesh

State-owned motorcycle seller and assembler Atlas Bangladesh incurred a loss of Tk0.83 crore in the first quarter, while its loss per share stood at Tk0.25.

Earlier, it decided not to pay any dividend to its shareholders for the last fiscal year. During the year, it posted a loss per share of Tk2.01.

Atlas Bangladesh is selling and assembling Zongshen two-wheelers and TVS motorcycles.