Aftab Automobiles suffers massive losses

Aftab Automobiles Ltd, which primarily assembles Hino buses, suffered massive losses in the first quarter of the current fiscal year, reasoning that "chassis model changes" and challenges in opening letters of credit for imports caused its revenue to plunge.

The loss amounted to Tk 6.86 crore in the July-September period of fiscal year 2023-24, the company said in a financial statement posted on its website.

In the same period a year ago, the company had made a profit of Tk 11.78 lakh.

Aftab recorded a profit in the last financial year ending in June 2023.

The publicly listed company said its revenue stood at Tk 10.4 crore in the three months to the end of September 2023.

In contrast, it was Tk 34 crore in the same period a year ago.

"The introduction or modification of chassis models has played a significant role…Customer adaptation to these changes often requires a transition period, during which sales may experience a temporary downturn," said the company in its website.

"The ongoing currency crisis, particularly fluctuations in the dollar exchange rates impacting LC transactions, has introduced complexities in international trade," it read.

"Clear and effective communication highlighting the advantages of the new models, along with proactive engagement to address customer concerns, is crucial to facilitating a smoother transition," it added.

Shares of Aftab Automobiles fell 9.33 percent before closing at Tk 27.20 at Dhaka Stock Exchange today.

The company said its losses per share was Tk 0.65 for the July-September period of 2023.

In the same period a year ago, it had earning Tk 0.01 per share.