Force Motors surges 13% as June sales more than double

The company's total auto sales more-than-doubled or rose 124 per cent YoY to 1,925 units in June 2021

Shares of Force Motors edged higher by 13 per cent to Rs 1,369 on the BSE in intra-day trade on Tuesday after the company’s total auto sales more-than-doubled or rose 124 per cent year-on-year (YoY) to 1,925 units in June 2021. The car and utility vehicles company had sold a total of 860 units in June 2020. On a month-on-month (MoM) basis, the total sales grew 32 per cent from 1,460 units sold in May 2021.

At 10:18 am, the stock was trading 11 per cent higher at Rs 1,348 on the BSE, as compared to a 0.09 per cent gain in the S&P BSE Sensex. It had hit a 52-week high of Rs 1,660 on December 8, 2020. The trading volumes on the counter jumped multiple-fold, with a combined 835,000 shares having changed hands on the NSE and BSE so far.

While the company's domestic sales increased 107 per cent to 1,501 units, exports sales jumped by 216 per cent to 424 units in June 2021 over the same month of the previous year. Compared with May 2021, the company's domestic sales and exports have increased by 15 per cent and 175 per cent, respectively.

Force Motors is engaged in the manufacturing of light commercial vehicles and utility vehicles and engines. It is an automobile company, with a focus on design, development and manufacture of a range of automotive components, aggregates and vehicles.

For the January-March quarter (Q4FY21), Force Motors had posted a loss of Rs 49.98 crore and a loss of Rs 111.86 crore for the entire previous financial year 2020-21 (FY21).

The last quarter of FY21 was also impacted severely due to the COVID-19 pandemic. Both revenue and profitability for the year were severely impacted, resulting in a loss in FY21. Also, with the onset of the second wave of COVID-19, the impact will continue to affect the business of the company in the coming quarter, Force Motors said while announcing Q4FY21 results on May 28, 2021.