Ifad Autos’ Profit Declined By 39.4% In Q1’21-222 min read

IFAD Autos Limited, one of the leading automobiles companies in Bangladesh has posted its financial report for the period of Jul’21-Sep’21. Revenue of the company declined by 7.7% YoY from Tk 1,877.9 Mn in Q1’20-21 to Tk 1,733.3 Mn in Q1’21-22. Profit after tax declined by 39.4% YoY from Tk 172.4 Mn in Q1’20-21 to Tk 104.4 Mn in Q1’21-22.



Revenue decreased by Tk 144.7 Mn as the company witnessed another tough quarter due to Covid-19 lockdown. The government imposed over a month-long lockdown from July to the first week of August to reduce the infection rate of Covid-19. Hence the demand for commercial vehicles was lower compared to the same period last year. Imported vehicles sales which is the main source of Ifad Autos declined by 43.1% YoY from Tk 1,312.0 in Q1’20-21 to Tk 746.0 Mn in Q1’21-22. Sales from Assembling units increased by 64.6% YoY from Tk 562.2 Mn in Q1’20-21 to Tk 925.6 Mn in Q1’21-22.

Gross Profit


Gross profit declined by 17.7% YoY mainly due to a decrease in Gross profit margin. Gross profit was 18.4% in Q1’21-22 which was 20.6% in the same period last year.



Profit Declined by 39.4% YoY from Tk 172.4 Mn in Q1’20-21 to Tk 104.4 Mn in Q1’21-22. Profit declined mainly due to de-growth in gross profit and higher operating expenses. Administrative expense and Selling expense increased by 9.3% and 2.2% YoY. As a result, operating profit declined by 29.2% YoY from Tk 260.9 Mn in Q1’20-21 to Tk 184.5 Mn in Q1’21-22.

Future Ahead

Ifad’s recovery of revenue fully depends on the rise of business activities. Due to the mass vaccination program of the government Covid-19 infection rate has reduced significantly. However, businesses are now facing inflationary pressures as the cost of raw materials and freight costs have risen significantly. Hence the company might face another tough quarter in Q2’21-22.

Get real time updates directly on you device, subscribe now.

You might also like
Notify of

Inline Feedbacks
View all comments
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Would love your thoughts, please comment.x


Join our mailing list to receive the latest news and updates from Markedium!

You have Successfully Subscribed!