(Reuters) -Indian automaker Force Motors on Friday reported a more than three-fold rise in fourth-quarter profit due to higher sales of its multi-seater vans, which are also used as school buses and ambulances, as well as a one-off gain. The company, which makes engines for BMW and Mercedes cars in India, posted a consolidated net profit of 4.35 billion rupees ($50.96 million) in the quarter ended March 31, compared with 1.4 billion rupees a year ago.
Forces Motors’ quarterly profit before exceptional items and tax rose 27.5% to 2.73 billion rupees from a year ago.
It recorded a one-off income of 3.95 billion rupees from government incentives.
Meanwhile, the company’s total sales rose 19.5% in the fourth quarter.
Increased government spending and buoyant passenger carrier demand, which includes a majority of Forces Motors’ fleet, helped the sale of commercial vehicles in the country, an industry body said. The company gets about 56% of its turnover from commercial vehicle sales and the rest comes from contract engine manufacturing, according to its last annual report.
Its revenue from operations increased 17.1% to 23.56 billion rupees in the fourth quarter, while total expenses grew 16% to 21.06 billion rupees, led by an 11.7% growth in cost of materials consumed.
Forces Motors’ shares closed 1.2% lower before the company reported its quarterly results. The stock rose about 38.9% in the three months ended March 31.
($1 = 85.3620 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala and Shreya Biswas)
