India's Force Motors' Q1 profit jumps 69% on increasing demand

Force Motors

30/07/2024 10:32

BENGALURU, July 30 (Reuters) - 
    Indian automaker Force Motors  FORC.NS  reported a 69% rise
in quarterly profit on Tuesday as it benefitted from increasing
demand, boosting its shares 10%.
  
    The company, which also makes engines for BMW  BMWG.DE  and
Mercedes  MBGn.DE  cars in India, said its consolidated net
profit rose to 1.16 billion rupees (about $14 million) in the
April-June quarter, from 685.6 million rupees a year earlier.
        Force, which manufactures commercial vehicles (CV),
including vans, school buses and ambulances, reported a 27% rise
in revenue to 18.85 billion rupees during the quarter, driven by
a 10% jump in sales volumes.
        CV sales are often viewed as an indicator of economic
activity in India.
  
        CV manufacturers reported a 3.5% rise in sales in the
April-June period, defying market expectations, with analysts
expecting a decline in sales due to India's general elections
during the quarter.
  
    Economic growth, favourable government policies and a likely
good monsoon are expected to fuel demand in the CV sector in
fiscal 2025, according to an industry body.


($1 = 83.7250 Indian rupees)

 (Reporting by Nandan Mandayam in Bengaluru; Editing by Sonia
Cheema)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))