Ashok Leyland Q1 profit jumps over 3-fold to Rs 370.1 crore
Ashok Leyland had posted standalone net profit of Rs111.23 crore in the same quarter last fiscal, the company said in a BSE filing
New Delhi: Hinduja flagship firm Ashok Leyland on Tuesday reported over three-fold jump in standalone net profit at Rs370.1 crore in the first quarter ended on 30 June, riding on robust sales.
The company had posted standalone net profit of Rs111.23 crore in the same quarter last fiscal, Ashoky Leyland said in a BSE filing.
The company said revenue from operations during the period under review was at Rs6,250.12 crore. It was at Rs4,534.46 crore in the same quarter last fiscal. The two figures are not comparable as after goods and services tax(GST) implementation on 1 July 2017, revenue from operation is shown as net of GST.
Ashok Leyland managing director Vinod K Dasari said, during the quarter, the total industry volume registered 84% growth primarily driven by surge in infrastructure spend resulting in higher sales. “There was also the impact of base effect. We continued our focus on profitable growth and tight control on working capital, in a market which operated on heavy discounting and credit push,” he added.
Despite pressure on realisation and raw material price increase, the company continued to post growth with profitability, Dasari said. “We have grown significantly in intermediate commercial vehicles (ICVs). The light commercial vehicles (LCV) and bus business have also posted very good growth. Exports have also grown by 24 per cent,” he said.
During the quarter, Ashok Leyland saw its medium and heavy commercial vehicle (MHCV) volumes rise by 54% at 30,647 units, while LCVs increased by 33% to 11,481 units. On the outlook, Dasari said, “We will continue to pursue our strategy of de-risking the company from cyclicality even as we pursue superior returns.”
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