The board of directors of Runner Automobiles is going to sign an agreement with Bajaj Auto Ltd for the authorised distributorship of KTM branded Motorcycles in Bangladesh.
Bajaj Auto Ltd is one of India's biggest automotive companies with a presence in three continents and the world’s third largest bike manufacturer. Its principal office is situated in Mumbai.
Runner Automobiles will sign the agreement with Bajaj in the form of either completely built up (CBU) or semi knocked down (SKD) or completely knocked down (CKD) condition, or dealing in part level supply, and spares among the Bangladeshi customers, according to an official disclosure on Thursday.
This arrangement is expected to further strengthen Runner’s position in the high-end segment of the motorcycle market, added the disclosure.
Company officials said Runner would continue to put its maximised concentrated efforts to strengthen Bajaj Brand in Bangladesh and ensure mutual growth for Bajaj & Runner by tapping the huge potential available in branded Motorcycles and spare parts business in Bangladesh.
The company’s earnings per share (EPS) stood at Tk. 0.55 for January-March 2020 as against Tk. 0.77 for January-March 2019.
In nine months for July 2019-March 2020, its EPS was Tk. 2.74 as against Tk. 3.58 for July 2018-March 2019.
The Runner Auto also informed that overall automobile market (2W and 3W) has declined in Q3 compared to same quarter of the previous year and immediate past quarter due to the new Road Transport Act and other microeconomic issues.
In 2-Wheeler, 100cc and below segment has been affected the most which contributes 70 per cent of the 2W business of Runner Auto. March Sales and overall market activities suffered from Covid-19 pandemic.
Listed in May 2019, each share of the Runner Auto closed at Tk 48.40 on Wednesday at the Dhaka bourse.
Its shares traded between Tk 39 and Tk 99.90 in the last one year.
The company disbursed 10 cash and 5.0 per cent stock dividend for the year ended on June 30, 2019.
The company’s paid-up capital is Tk 1.13 billion, authorised capital is Tk 2.0 billion and the total number of securities is 113.53 million.
Sponsor-directors own 50.04 per cent stake in the company while institutional investors own 26.18 per cent, and general public 23.78 per cent as on June 30, 2020, the DSE data showed.