BackAshok Leyland’s Q2 profit zooms on asset sale
The company posted a net profit Rs120.68 crore, compared with a loss of Rs25.05 crore a year earlier
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Chennai: Ashok Leyland Ltd, India’s second-largest maker of trucks and buses, on Thursday reported a jump in net profit for the September quarter compared with a loss a year ago.
The Chennai-based company posted a net profit Rs120.68 crore for the quarter, compared with a loss of Rs25.05 crore in the year-earlier period. The profit was aided by an asset sale that raised Rs108.97 crore.
Excluding proceeds of the asset sale, the company’s net profit would have been Rs11.71 crore.
The profit was higher than the expectations of analysts polled by Bloomberg who had estimated a net profit of Rs10.14 crore. Net sales of the company improved by 26% to Rs3,150.36 crore, above the Bloomberg estimate of Rs3,024.7 crore.
The Hinduja group company improved its Ebitda margin—an indicator of operating profitability—to 7.3% in the July-September quarter from 4.7% in the preceding three months and 2.2% a year ago.
The company’s net profit was in line with expectations, but its earnings before interest, tax, depreciation and amortization (Ebitda) margin was a tad lower than anticipated, said Bharat Gianani, who tracks the company at Angel Broking Ltd.
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