Associate firm’s income helps Ifad Autos to post stellar profit in Q3

Ifad Autos Limited, the Bangladeshi dealer for Indian automotive company Ashok Leyland, reported that its profit jumped on its associate company's income in the third quarter of FY22.

According to the company's January-March quarter financial statement, Ifad Autos' net profit grew by 149% to Tk32.39 crore compared to the same time in the previous year.

In that quarter, Ifad Autos earned Tk20.42 crore from its associate company – Ifad Multi Products Limited, which is engaged in the food processing business. The commercial vehicle seller acquired a 40% stake in Ifad Multi Products by investing Tk80 crore at the end of the last year.

Ifad Autos' commercial vehicle sales also increased by 6% to Tk260.96 crore in the January-March quarter of the current fiscal.

At the end of the first three-quarters of FY22, its total revenue was Tk674 crore and its net profit was Tk56.93 crore, which was 3% and 4% higher respectively compared to the same period of the previous fiscal.

The price of Ifad Autos' shares slightly fell on the Dhaka Stock Exchange on Thursday and closed at Tk45.8.

Ifad Autos Limited imports vehicles including heavy trucks, dump trucks, medium-sized trucks, light commercial vehicles, double-decker buses, luxury buses, mini-buses and tractors to Bangladesh from neighbouring India.

Recently, the company signed a land-lease agreement with the Bangladesh Economic Zones Authority (Beza) intending to expand its manufacturing facilities on 30 acres of land at the Bangabandhu Sheikh Mujib Shilpa Nagar.

The company will invest $51 million to set up a car assembly plant, lubricant blending plant, and light engineering industry, which will create employment for about 880 people.