Ifad Auto suffers losses due to weak taka
Ashok Leyland vehicle distributor Ifad Autos Limited fell into losses in the first half of the fiscal 2022-23 due to the depreciation of the taka against the dollar.
Its net loss stood at Tk17.27 crore, compared to a net profit of Tk24.63 crore in the same period of the previous fiscal year.
In a filing on the Dhaka Stock Exchange (DSE), the company said it incurred foreign currency losses of Tk52 crore in the July-December period, which were only Tk2 crore a year ago.
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Ifad Autos Limited has mentioned it as the main reason for incurring losses.
In the six months through December, its revenue grew by 6% to Tk437.54 crore due to its market leadership in the bus segment, which saw continued demand after the Padma Bridge opened new routes connecting south-western Bangladesh with the capital at the end of June last year.
But the revenue fell by 16% to Tk202 crore as the company could not import Ashok Leyland vehicles as per demand due to the dollar crisis.
In the first half, Ifad Autos' sales of its imported vehicles dropped by 43%.
Its shares closed at the floor price of Tk44.1 on the DSE on Wednesday.
