BackAshok Leyland’s Q2 profit rises 137 % to Rs286.81 crore
Net sales up 51.6 % to `4,878.81 crore, falling short of the `5,197.10 crore estimated by analysts
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Chennai: Ashok Leyland Ltd on Wednesday said net profit rose 137% in the September quarter, led by higher sales.
Net profit at India’s second-largest commercial vehicles manufacturer rose to ₹ 286.81 crore from ₹ 120.68 crore in the year-ago period. A Bloomberg poll had forecast a net profit of ₹ 334.30 crore.
“Ashok Leyland’s Q2 results were below estimates on back of lower than expected topline and higher depreciation charge," said Bharat Gianani, analyst at Angel Broking.
Net sales rose 51.6 % to ₹ 4,878.81 crore, falling short of the ₹ 5,197.10 crore estimated by analysts.
“Relentless focus on customer profitability is the primary reason behind the good results. Continued focus on cost control and reining-in of discounts also helped," said Vinod K. Dasari, managing director of Ashok Leyland, in a statement released by the company.
The Hinduja Group flagship company, which also makes vehicle components, saw a 4.5 % rise in the sales of light commercial vehicles (LCVs). The company sold 7,497 LCVs against 7,712 vehicles in the same period a year ago.
The world’s fourth largest bus maker saw its overall sales volume surge 64% in the medium and heavy commercial vehicles segment. The company sold 29,884 vehicles in this segment against 18,207 units in the year-ago period.
Ashok Leyland shares closed 1.99% up at ₹ 92.15 on the BSE on Wednesday, while the benchmark Sensex index closed at 26,552.92 points, down 0.14%.
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