Runner Automobiles, one of the leading automobiles companies in Bangladesh has recently published its financial report for the period Jul’21-Sep’21. Revenue increased by 4.3% YoY from Tk 2,223.4 Mn in Q1’20-21 to Tk 2,320.0 Mn in Q1’21-22. Net Profit after tax declined by 18.3% YoY from Tk 127.3 Mn in Q1’20-21 to Tk 104.1 Mn in Q1’21-22.
Revenue
Revenue grew by 4.3% YoY even after the quarter was disrupted by strict lockdown from July to the start of August. Motor Cycle sales declined by 10.3% YoY whereas Truck sales increased by 15.3% YoY. Motorcycle sales were Tk 854.9 Mn in Q1’21-22 which was Tk 953.1 Mn in Q1’20-21. Truck sales were Tk 1,465.1 Mn in Q1’21-22 which was Tk 1,270.4 Mn in Q1’20-21. The truck sales trend is clearly showing recovery in business activities whereas Motor Cycle Sales is still impacted by the pandemic.
Gross Profit
Gross Profit increased by 7.4% YoY as gross profit margin increased by 0.8%. The Gross Profit margin was 27.3% in Q1’21-22 which was 26.5% in Q1’20-21. Gross profit declined by 10.3% YoY in Motor Cycle sales where gross profit in truck sales increased by 17.1% YoY. Motor Cycle gross profit was Tk 187.3 Mn in Q1’21-22 which was Tk 208.7 Mn in Q1’20-21. Gross profit of Truck segment increased from Tk 381.6 Mn in Q1’20-21 to Tk 447.0 Mn in Q1’21-22.
Profit
Net Profit after tax decreased by 18.3% YoY mainly due to higher finance costs & lower other income. Operating Income increased by 14.3% YoY mainly due to growth in gross profit and lower growth in operating expenses compared to gross profit. However, a 7.5% YoY increase in finance cost and a 39.1% YoY decline in other income led to the decline of profit after tax.
Future Ahead
The growth in sales is commendable as the quarter was disrupted by over a month of lockdown due to the Covid-19 pandemic. Due to the mass vaccination program of the government, the Covid-19 infection rate declined sharply. We expect Runner to have a better quarter in Q2’21-22 compared to Q1’21-22.
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