Ford India has managed to reduce its net loss thanks to an increase in the number of vehicles sold during the last financial year.
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The company sold 23,186 units during the period 51% more compared to the previous year’s 15,329. The rise was due to an increasingly popularity Ikon line (a three-box sedan based on the previous generation Fiesta), rescued from the doldrums by price cuts.
However, the price cuts resulted in revenues increasing only 28.75% from INR10.363 billion a year ago to INR 13.26 billion. The company reported profit before interest and depreciation of INR558.1 million, a marginal fall from the previous year’s INR588.3 million. After providing INR596.7 million for depreciation and INR435.1 million for interest, the net loss was INR465.4 million, slightly improved compared with the previous year’s INR542.3 million.
In addition, Ikon exports were lower this fiscal year. However, Ford recently introduced the Fusion in the market and is expecting a financial boost from the new model. The Endeavour SUV, imported fully assembled from Thailand, is also selling well.
Deepesh Rathore / Tilak Swarup
