Runner Auto incurs losses of Tk 88cr

Runner Automobiles, one of the large listed automobile companies, incurred losses of around Tk 88 crore in the fiscal year 2022-23, mainly due to lower sales as a consequence of the macroeconomic situation and the Ukraine-Russia war.

Due to the huge losses, the board of directors of the company, which was listed in 2019, recommended no dividend for shareholders.

The company provided a 10 percent cash dividend in each of the previous four years.

The company said in a price-sensitive disclosure that the country's overall economy had been impacted by the war and that those impacts were felt before the company could fully recover from Covid-19-related disruptions.

That caused negative growth in most industries.

"The automobile industry faced a significant decline due to increase in material prices, substantial increases in fuel costs and inflationary pressure, especially for our customer segments," the company said.

However, it has been observing a positive trend in the demand for three-wheelers since the establishment of a manufacturing plant.

Successful entry into the electric two-wheeler segment, combined with overall portfolio upgradation in line with recent policy changes and revamping of the sales channel, is expected to improve its financial results in the upcoming periods, it added.

The company's revenue decreased due to a decline in sales of two-wheelers, three-wheelers and commercial vehicles, which led to negative earnings per share, the company said.

Its earnings per share stood at Tk 7.75 in the negative for the year ending on June 30, 2023. It was Tk 2.40 the previous year.

Runner's paid-up capital is Tk 113 crore. Its share price is Tk 48.40.