Ford India finally made a profit of ₹5.26 billion — For the first time in nearly a decade

(IANS)

• Ford Motor Co.’s India operations reported a profit of ₹5.26 billion after nearly a decade of consecutive losses.
  
  
• The company last announced its profit worth ₹190 million in the year 2009.
  
  
• The profits are reported to be driven from domestic sales and exports.

Having been in India for 20 years, Ford Motor Co reported profits in India for the first time in a decade according to Reuters. For the fiscal year that ended on March 31, the company made a profit of ₹5.26 billion ($72 million).

The company’s profits from domestic sales and exports resulting in increase in the profit margin to over 20% for the third consecutive year. Ever since Ford Motor Co started functioning in India, domestic operations have crossed ₹72.4 billion turnover for the first time, with exports reported to be 2.4 times the local sales.

The company’s actually be making profits in the Indian market since 2014, but net profits — that’s actual profits after taking care of expenses — only came into the picture for FY18. However, Ford India executives refused to comment on the estimate for the FY18.

The company reported losses for years at a stretch, and reported an aggregate loss of ₹34.8 billion altogether for the FY17.

Earlier, Ford India announced its profit in the 2009 amounting to ₹190 million. Since then, due to mounting losses and raising doubts, the company launched an initiative to correct the fundamental cost, capacity utilization and the brand.

The Emerging Market Operation Model was proposed for execution in the year 2016 focusing on different aspects of business, from administration to marketing and distribution, to cut down the unnecessary cost in order to compete with other giants including Maruti Suzuki and Hyundai.