Ifad Autos Limited, one of the leading automobiles companies in Bangladesh has recently published its annual report for FY 2020-21. Revenue increased by 11.5% from Tk 7,772.9 Mn in FY 19-20 to Tk 8,663.0 Mn in FY 20-21. Profit after tax increased by 139.7% from Tk 229.9 Mn in FY 19-20 to Tk 551.2 Mn in FY 20-21.
Revenue grew by Tk 890.2 Mn in FY 20-21 as the demand for commercial vehicles picked up compared to the last two quarters of FY 19-20. Number of vehicles sold increased by 17.2% from 4,081.0 in FY 19-20 to 4,784 in FY 20-21.
Assembling vehicles unit contributed the most to the growth by growing 30.3% from Tk 2,356.3 Mn in FY 19-20 to Tk 3,069.2 Mn in FY 20-21.
Gross profit increased by 18.0% as gross profit margin increased. Gross profit margin increased from 17.2% in FY 19-20 to 18.2% in FY 20-21.
Profit increased by 139.7% mainly due to higher sales, other income & lower finance cost. Other Income & Profit share from JVs increased by 65.5% and 25.2% respectively. Other Income increased from Tk 78.2 Mn in FY 19-20 to Tk 129.4 Mn in FY 20-21. Gain from sale of Property, Plant & Equipment and Gain from Investment in shares were the major contributors in other income growth. Finance Expense decreased from Tk 399.7 Mn in FY 19-20 to Tk 323.2 Mn in FY 20-21 mainly due to lower interest rate.
The commercial vehicle market is going through volatility due to the uncertainty created by the pandemic. The market has started to rebound as the economy is now in full throttle. However, the rise of Omicron variant coronavirus can create new uncertainties in the business environment.