Runner’s profit grows 37%
Runner Automobiles, the manufacturer of Runner, UM and Piaggio two wheelers, also the sole distributor of KTM motorcycles, Bajaj three wheelers, and Eicher commercial vehicles, posted 37% growth in its annual profits.
Amid a slowdown in the commercial vehicle market over 2018 and 2019 and a 66-day long nationwide shutdown had drastically dragged Runner’s earnings per share (EPS) down to Tk1.97 in the 2019-20 fiscal year, from Tk4.41 in the previous year.
From the dent, the company recovered its profits partially as the EPS in 2020-21 fiscal year stood at Tk2.70.
Of the profit per share, the mother company Runner Automobiles Ltd which is engaged in manufacturing, marketing and export of two wheelers alongside the business of Bajaj LPG-run three wheelers contributed Tk1.08.
The rest came from its subsidiary engaged in Eicher commercial vehicles, according to the company’s financial disclosure.
“The automobile industry started showing recovery from the Covid-19 impact and that has been reflected in the company’s performance,” Runner Automobiles said in its statement after the board meeting held on Wednesday.
Shifting focus towards more cash sales
Over the past fiscal year, the company has taken strategic moves to increase cash sales and manage overall working capital more efficiently, which helped increase the positive operating cash flow, Runner said in its statement.
Runner, which has long been leading the on-installment selling of two wheelers in the country, had contributed a lot to make motorcycles affordable to the mass people as it pioneered local manufacturing to reduce duty burden on motorcycles by more than one-third.
Its installment facility helped thousands of limited-income people opt for a motorcycle for daily commuting both in urban and rural Bangladesh, or for ride sharing in the capital.
However, for the sake of its own cash flow strengthening, the company’s focus is shifting now.