The Financial Express

Aftab Automobiles evades loss as revenue jumps 131pc

| Updated: February 06, 2023 09:47:40

Aftab Automobiles evades loss as revenue jumps 131pc

Aftab Automobiles narrowly escaped loss in October-December of the FY23 only by raising revenue at nearly 131 per cent year-on-year.

Its earnings per share (EPS) rose to Tk 0.01 for the second quarter of the ongoing fiscal year from Tk (0.20) for the same quarter a year ago.

The company that assembles vehicles and makes bodies of buses saw its revenue increase to Tk 233.74 million for the quarter ended in December last year.

The growth in revenue, however, could not boost profit because of a steep rise in the cost of sales and operating expenses, said Asif Khan, chairman at Edge Asset Management, adding that the foreign exchange loss had mainly eroded the company's net income.

The cost of sales jumped 205 per cent to Tk 184.67 million while the operating expenses rose 93 per cent to Tk 34.40 million for Q2, FY23, compared to the corresponding period of the previous fiscal year.

Aftab Automobiles secured a net income of Tk 1.05 million for the quarter through December 2022 while it had incurred a loss of Tk 19.11 million in the same quarter the year before.

The EPS increased as sales revenue was higher due to the market demand, the company said in a disclosure.

The company secretary of Aftab Automobiles could not be reached over the phone for comments.

The EPS for Q1 and Q2 of the FY23 and for FY22 remains same.

In the first three quarters of the FY22, the company reported losses ranging Tk 0.09 to Tk 0.39 per share.

The operating cash flow of the company declined significantly for July-December, FY23, compared to the same period of the FY22.

The consolidated net operating cash flow per share (NOCFPS) was Tk. 1.77 for July-December, FY23 against Tk. 5.01 for July-December, FY22.

The NOCFPS fell for increased payment to suppliers while collection from customers rose negligibly, according to the disclosure by the company.

Aftab Automobiles has been successfully assembling TOYOTA & HINO vehicles for the Bangladesh market since 1982.

Its share price closed at Tk 34.40 each on October 13 and then slid 34.37 per cent to Tk 25.60 each by October 26, 2022.

The stock plummeted to the floor price of Tk 24.50 in November last year. It closed at the same price on Wednesday.

Aftab Automobiles, presently an 'A' category company, was listed on the stock exchange in 1987.

The company's sponsor-directors hold 30 per cent shares, institutes 35.99 per cent, and general investors 34.01 per cent, according to the data available until the end of 2022.

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