Mumbai: India’s second biggest maker of trucks and buses, Ashok Leyland Ltd, said March quarter profit rose 5.2% after economic growth boosted demand for commercial vehicles.

Net income in the three months that ended on 31 March rose to Rs181 crore from Rs172 crore a year earlier, the company told the Bombay Stock Exchange on Thursday. Sales increased 11% to Rs2,570 crore.

Ashok Leyland’s profit has risen almost four times in the past five years as the building of highways spurs demand for trucks and buses in India. The Chennai-based firm tied up with Nissan Motor Co. last year to bolster its product range as Daimler AG and Volvo AB, the world’s two largest truck makers, expand into India.

Ashok Leyland’s truck and bus sales increased 4.55% to 27,311 units in the last quarter, according to monthly filings by the company. Income from businesses other than selling vehicles fell 31% in the fourth quarter to Rs11.6 crore.

Net income for the entire fiscal year was up 6.3% to Rs469 crore from Rs441 crore a year earlier, the company said. Revenue in the year rose 7.7% to Rs7,800 crore.

Ashok Leyland will pay Rs1.50 a share as dividend for the fiscal year that ended on 31 March. Its stock price fell Rs1.30, or 3.1%, to Rs40.50 on Thursday on the Bombay Stock Exchange. The stock has declined 22% so far this year.

Bloomberg