Runner Automobiles returns to profit in FY25 on strong three-wheeler sales

Runner Automobiles returned to profit in FY25, driven by robust sales growth, particularly in the three-wheeler segment, after enduring losses for two consecutive years.

The country's pioneering motorcycle manufacturer reported a consolidated profit of Tk 102 million in FY25 against a loss of Tk 61 million a year earlier.

"The thriving business of three wheelers supported an increase in revenue, while cost control and managing funds efficiently helped to increase profitability," the company said in its earnings note. The earnings were further supported by the two-wheeler eBike segment, it added.

Sales of three wheelers increased, backed by higher demand and enhanced marketing activities, while the commercial vehicle segment also continued to show improved performance, the company said.

Runner's three-wheeler manufacturing plant, established in February 2023 and put into operation in August the same year, helped increase overall sales as Bajaj-branded three wheelers attracted customers with price benefits.

Runner Automobiles built the three-wheeler plant with technical support from India's Bajaj. A capital worth Tk 2.65 billion, raised in May 2023 through sustainability bonds, was used as working capital for three-wheeler manufacturing and for building a rooftop solar plant.

After suffering losses in FY23 and FY24, Runner returned to positive territory from the second quarter (October-December) of FY25 due to an easing dollar crisis in the banking sector, backed by higher remittance inflows and export earnings.

Battered by economic challenges, the automobile industry faced a significant decline in sales for the past two years due to increased material prices, a substantial rise in fuel costs, and inflationary pressure on its customer base.

The company is yet to disclose its annual sales figures.

Runner's sales jumped more than 30 per cent year-on-year to Tk 7.50 billion in the nine months through March this year, driven by strong three-wheeler sales.

Returning to profit, the board declared a 10 per cent cash dividend for FY25, compared to 11 per cent paid in the previous year.

The company will hold its annual general meeting on December 23, and the record date is November 25.

Following the disclosure, its stock rose 3.08 per cent to Tk 30.10 per share on Tuesday on the Dhaka Stock Exchange.

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