Force Motors' Q4 Net Profit Triples on Strong Sales and One-Off Gain

Force Motors reported a 209.93% year-on-year rise in consolidated net profit to ₹434.71 crore for the quarter ended 31 March 2025 (Q4 FY25), compared to ₹140.24 crore in the same period last year. Revenue from operations increased 17.14% to ₹2,356.01 crore.

Profit before tax rose 211.51% year-on-year to ₹667.81 crore. However, the results for the quarter included a significant one-off income of ₹395 crore from government incentives. Adjusted for this exceptional item, the underlying profit growth, while positive, would have been more moderate.

One-Off Government Incentive Drives Exceptional Bottom Line

The company’s reported profit for the quarter was materially boosted by a government incentive received during the period. Excluding this one-time gain, Force Motors' profitability still reflected an improvement supported by better volumes, primarily from its multi-seater van segment catering to school transport and ambulance services.

Force Motors generates around 56% of its revenue from commercial vehicle sales, with the remaining share attributed to contract engine manufacturing for BMW and Mercedes-Benz in India. The commercial vehicle industry benefited from increased government spending and stronger demand for passenger carriers during the quarter.

Expense Trends and Operational Highlights

Total expenses rose 16.03% year-on-year to ₹2,105.91 crore, broadly in line with revenue growth. The cost of materials consumed increased 11.7%, while employee benefit expenses grew 19.46% to ₹191.50 crore.

Finance costs declined sharply by 49.2% year-on-year to ₹7.26 crore, aided by lower borrowings and better cash flow management.

Full-Year Financial Performance

On a full-year basis, Force Motors reported a consolidated net profit of ₹800.74 crore in FY25, up 106.33% from ₹388.22 crore a year ago. Revenue from operations rose 15.44% year-on-year to ₹8,071.73 crore.

The full-year results reflect a combination of increased sales across segments and operational efficiencies, supported by favourable industry trends.

Dividend Declaration

The Board of Directors has recommended a dividend of ₹40 per equity share for FY25, subject to shareholder approval.

Stock Performance

Force Motors' shares closed 1.2% lower on Friday ahead of the results announcement. However, the stock advanced approximately 38.9% over the three months ended 31 March 2025, reflecting improved sentiment around the company’s prospects.

Outlook

Force Motors remains focused on strengthening its presence across commercial vehicles and contract manufacturing. While recent results benefited from a one-time gain, the company's operational growth, improving cost structures, and diversified business model provide a supportive base for future performance.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here