Runner’s Profit Declined By 18.3% In Q1’21-222 min read

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 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.



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.

For more updates, be with Markedium.

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!