Kia achieves operating profit in just 1 year

Kia posted a revenue of Rs. 10,838 crore in FY2020.

Kia has become one of the quickest carmakers to turn operationally profitable in India.

Kia has achieved operational profitability in just the first year of operations. By the end of the last fiscal, the company’s operational profit stood at Rs. 308 crore. Operating profit is the profit before interest and taxes.

During this period, the carmaker produced more than 1 lakh vehicles and posted a revenue of Rs. 10,838 crore. Meanwhile, the company has said to have invested Rs. 8,771 crore till now.

The company recorded a net loss of Rs. 326 crore (including interest and depreciation costs) during the same fiscal.

In FY2020, Kia posted an operating profit margin of 2.9%, while the average revenue per vehicle was at Rs. 10.20 lakh. This figure is 1.5-2.0X of market leaders Maruti Suzuki and Hyundai.

Meanwhile, the carmaker sold 21,022 units in November 2020. Once again, the Sonet became the best selling model in the sub-4 meter SUV segment with total sales of 11,417 units.

Source