Aftab Automobiles posts consecutive second quarter loss

Aftab Automobiles Ltd, a major commercial vehicle seller, today reported losses for the second consecutive quarter ending in December as it was yet to recover from the challenges stemming from changes in chassis model and the persistent problem in opening of letters of credit (LC) for dollar crisis.

The automotive company was yet to upload its financial statement on its website. However, in a filing on the website of the Dhaka Stock Exchange (DSE), the company said its losses per share stood at Tk 0.28 in the October-December period of 2023 from profits of Tk 0.01 in the same period a year ago.

With the second quarter results, the losses per share of the company stood at Tk 0.94 in the July-December period of 2023-24 fiscal year, down from a profit of Tk 0.02 per share in the same period a year ago.

Aftab also reported a decline in its net operating cash flow per share (NOCFPS) to Tk 1.12 in the first half of the current financial year from Tk 1.77 the same period a year ago.

"The substantial variance in NOCFPS observed between July 2023 and December 2023 is primarily attributed to a noteworthy decline in customer collections and an increase in supplier payments," according to the DSE posting.

The automobile company, which primarily assembles Hino buses, reported Tk 6.86 crore losses in the July-September period of 2023-24 fiscal year.

Aftab Automobiles shares closed 9.8 percent higher to Tk 44.5 today in the DSE.