Runner Auto returns to profit in Q2 with 49% revenue growth
The automobile maker registered a Tk64.57 lakh profit in the second quarter of FY24
Runner Automobiles, a local two and three-wheeler maker and assembler, returned to profit in the second quarter of FY24 with a 49 percent revenue growth riding on an upbeat three-wheeler sale in the October to December quarter of the 2023-24 fiscal.
According to its unaudited consolidated financial statement, its revenue grew to Tk216 crore during the October-December period from Tk145 crore during the same time in the previous fiscal year.
The automobile maker registered a Tk64.57 lakh profit in the second quarter of FY24 in contrast to Tk26.56 crore loss posted during Oct-Dec in 2022-23 fiscal year.
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The company's earnings per share (EPS) stood at Tk0.05 in the second quarter.
In its price sensitive information (PSI), the engineering firm said its three-wheeler business witnessed a significant growth in revenues, which resulted in the positive EPS.
According to its half-yearly financial statement, its losses narrowed to Tk27.36 crore during the July-December period from Tk35.49 crore in same period of the last fiscal year.
In the PSI, Runner said, "Amidst very challenging economic and political conditions, the company had set clear target and ensured dedicated focus on high prospect segments as per plan in order to deliver a significant shift in business performance."
The completely revived 3W network played the biggest role in the sales turnaround for its Bajaj RE three-wheelers in Q2.
While the newly introduced Yadea electric scooter segment started an encouraging journey, smart planning and focused drive for specific motorcycles categories also helped the business growth of Runner despite the fact that the two-wheeler industry had further dropped in this quarter, the company said.
In 2022-23 fiscal year, the Runner Automobiles had incurred a loss of Tk87.90 crore, for which the company did not declare any dividend to its shareholders. It got listed on the stock exchange in 2019.
On Thursday, its shares price fell by 2.41% or Tk0.9 each to Tk36.40 at the Dhaka Stock Exchange (DSE).
