Ifad Autos incurs loss

Ifad Autos Ltd, one of the leading automobile companies in Bangladesh, reported a loss of Tk 15 crore in the financial year of 2022-23. 

As a result, its earnings per share (EPS) slipped to Tk 0.58 in negative from Tk 1.56 in 2021-22.

The company said the major reason for the decrease in the EPS was losses incurred from the fluctuations in the foreign currency exchange rate and higher inflation.

Sales decreased more than 4 percent due to a decline in demand for commercial vehicles.

Ifad Autos is not the lone company that incurred losses in the last financial year.

Runner Automobiles, another listed automobile company, suffered a loss of around Tk 88 crore in FY23.

Ifad's net operating cash flow per share stood at Tk 2.76 in negative in the last financial year against Tk 4.59 in positive in FY22.

The decline was attributed to foreign currency exchange-related losses resulting from payments to suppliers against the import of CBU (completely built up)/CKD (completely knocked down) raw materials and the decrease of cash receipts from customers, according to its financial statements.

Shares of Ifad Autos closed unchanged at Tk 44.10 on the Dhaka Stock Exchange yesterday.