Runner Automobiles rebounds in Q3 on higher sales of three wheelers

Runner Automobiles made a turnaround in the January-March quarter this year after suffering a huge loss in the same quarter last year, driven by robust sales growth, particularly in the three-wheeler segment.

The country's pioneering motorcycle manufacturer reported a consolidated profit of Tk 68.32 million in January-March, against losses worth Tk 153 million in the same quarter a year ago.

Accordingly, earnings per share (EPS) stood at Tk 0.43 for the latest quarter, recovering from a loss of Tk 1.35 per share in the same quarter of the previous year, according to a regulatory filing on Sunday.

"The thriving business of three wheelers supported an increase in revenue, while cost control and efficient fund management helped increase profitability," said Shanat Datta, chief financial officer of Runner Automobiles.

The third-quarter revenue jumped 56 per cent year-on-year to Tk 2.94 billion due to a substantial increase in the sales of three wheelers.

Three-wheeler sales more than doubled during the quarter, compared to the same quarter of the previous year, backed by higher demand and enhanced marketing activities. The commercial vehicle segment also continued to show improved performance, said Mr Datta.

"Although the rising financing costs and adverse exchange rate fluctuations have continued to pose challenges, we could make three wheelers available in the market as opening letters of credit eased," he added.

Import LCs jumped 20 per cent year-on-year to $6.26 billion in February this year as higher remittance inflow and export earnings boosted the availability of dollars in the banking sector.

Runner's three-wheeler manufacturing plant, established in February 2023, supported the increase in the overall sales as Bajaj-branded three wheelers attracted customers with price benefits.

Runner Automobiles built the three-wheeler plant, with technical support from Indian Bajaj.

A capital worth Tk 2.65 billion, raised through sustainability bonds in May 2023, was used as working capital for the manufacturing plant and a rooftop solar plant.

"We remain confident in the growth plan supported by increasing demand in the three-wheeler segment, and encouraging early positive results from eBike initiatives in the two-wheeler segment," said Mr Datta.

Having suffered losses in two consecutive years to FY24, Runner Automobiles returned to the green zone in the second quarter (October-December) of FY25 amid higher availability of the greenback.

However, thanks to first-quarter losses, the company remained in the red in the nine months through March this year, with a loss of Tk 18.77 million, down from Tk 427 million in the same period of the previous year.

Meanwhile, the stock fell 3.03 per cent to Tk 28.80 per share on the Dhaka bourse on Sunday.

babulfexpress@gmail.com