Indian automaker Force Motors' Q2 profit soars on strong demand

Force Motors

09/11/2023 11:40

BENGALURU, Nov 8 (Reuters) - Indian automaker Force
Motors  FORC.NS  reported a nearly five-fold rise in
second-quarter profit on Thursday, helped by strong demand for
its multi-seater vans and buses.
    Consolidated net profit for the three months to Sept. 30
rose to 938.7 million rupees ($11.27 million), compared with
192.5 million rupees a year ago.
    The company, which also makes engines and axles for German
automakers BMW  BMWG.DE  and Mercedes Benz's  MBGn.DE  cars in
India, said revenue was up 42.5%.
    A pickup in economic activity after the COVID-19 pandemic
has helped the Maharashtra-based company turn profitable. 
    The company had reported an annual loss in fiscal 2021 and
2022 before posting a profit in fiscal 2023 on the back of
demand for its models, including the top-selling Traveller.
    Demand for the Traveller, a customizable multi-seater van
used for everything from school buses to ambulances, recovered
as schools re-opened and travel curbs eased.
    Overall domestic sales and exports of Force vehicles were up
26.4% on year during the quarter.
    Force does not provide a break-up of its revenue but said in
its last annual report that it derives 48% of its turnover from
its core vehicle-making business and 35.6% from the contract
manufacturing of engines for BMW and Mercedes.

($1 = 83.2790 Indian rupees)

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