Aftab Auto's Jul-Sep loss brings down share price by 9.33%
Aftab Auto incurred a loss of Tk6.86 crore in the first quarter of the ongoing fiscal year
The share price of Aftab Automobiles Limited declined 9.33% on Monday at the Dhaka Stock Exchange (DSE) due to the company reporting a significant loss in the July to September quarter of the 2023-24 fiscal year.
The Hino-branded commercial vehicle seller's shares closed at Tk27.2 apiece on Monday, which was Tk30 on the previous session.
Since December 2022, Aftab Auto has suffered a 24% reduction in its share price because the stock failed to attract investors amidst the company's downturn in business.
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According to the company's financial disclosure on the DSE website on Monday, Aftab Auto incurred a loss of Tk6.86 crore in the first quarter of the ongoing fiscal year. In the same period of the previous fiscal, the company made a profit of Tk0.11 crore.
Its revenue also fell by 69% to Tk10.44 crore in the first quarter of FY24, compared to the Jul-Sep quarter of FY23.
Aftab Auto explained in its financial statement that the decrease in revenue was notably influenced by two factors: changes in chassis models and the persistent challenges associated with the dollar crisis affecting the opening of letters of credit (LC).
The company additionally stated that the introduction of new chassis models played a significant role in the decline in sales. Customer adaptation to these changes often requires a transition period, during which sales may undergo a temporary downturn.
In November 2023, the company paid a 10% cash dividend to its shareholders other than the sponsors and directors for FY23.
