Ifad Autos’ profit declined by 41.3% in H1’21-22

Ifad Autos Limited, one of the leading automobiles companies in Bangladesh has posted its financial report for the period of Jul’21-Dec’21. Revenue of the company increased by 0.3% YoY from Tk 4,122.2 Mn in H1’20-21 to Tk 4,132.9 Mn in H1’21-22. Profit after tax declined by 41.3% YoY from Tk 419.5 Mn in H1’20-21 to Tk 246.3 Mn in H1’21-22.

Revenue

Revenue increased by Tk 10.7 Mn mainly due to 6.9% YoY growth in Q2’21-22. Sales increased from Tk 2,244.3 Mn in Q2’20-21 to Tk 2,399.6 Mn in Q2’21-22. Imported vehicles which is the main source of the company’s revenue declined by 33.1% YoY from Tk 2,902.1 Mn in H1’20-21 to Tk 1,940.1 Mn in H1’21-22. Assembling vehicles sales increased by 73.5% YoY from Tk 1,161.0 Mn in H1’20-21 to Tk 2,014.3 Mn in H1’21-22. Body Building Unit sales also increased by 202.0% YoY from Tk 59.1 Mn in H1’20-21 to Tk 178.5 Mn in H1’21-22.

 Gross Profit

Gross profit declined by 15.1% YoY mainly due to decrease in Gross profit margin. Gross profit was 18.4% in H1’21-22 which was 21.7% in same period last year.

Profit

Profit Declined by 41.3% YoY from Tk 419.5 Mn in H1’20-21 to Tk 246.3 Mn in H1’21-22. Profit declined mainly due to de-growth in gross profit and higher operating expenses. Administrative expense and Selling expense increased by 6.2% and 5.5% YoY respectively. As a result, operating profit declined by 23.4% YoY from Tk 642.9 Mn in H1’20-21 to Tk 492.5 Mn in H1’21-22.

Future Ahead

Ifad Autos sales showed growth of 0.3% YoY in H1’21-22 mainly due to growth in Q2’21-22. As the business activities is now normal the demand for commercial vehicles is expected to rise. However, the cost of raw materials and freight cost have risen significantly in the last few quarters. Hence the company might face another tough quarter in Q3’21-22.

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