India's Force Motors' Q1 profit jumps 69% on increasing demand
Indian automaker Force Motors 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 and Mercedes 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.
