Vehicle manufacturer Azia Avto reported a net loss of KZT13.4bn (€43mn) in January-September against a net profit of KZT4.5bn in the same period of the previous year. The unprecedented deterioration of the company’s financial results was caused by an influx of Russian cars to the Kazakh market. Since December 2014, Kazakhs have taken advantage of the weak ruble and preferred to purchase their vehicles in Russia. The trend stopped only on August 20, when the Kazak government adopted a decision on switching to a free-floating exchange regime pushing the tenge 30% down against the dollar.
Azia Avto’s revenues dropped by 66% y/y to KZT27.715bn and gross profit tumbled by 83% y/y to KZT3.3bn. The company’s assets shrank by 13% in the first nine months of the year to KZT52bn, liabilities grew by 14.4% to KZT44.8bn and equity capital plummeted by 66% to KZT7.2bn. Charter capital remained unchanged at KZT1.4bn.
Azia Avto was established in 2002 and is the largest car producer in Kazakhstan. The company’s assembly plant is located in East Kazakhstan Region.
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