Net sales rose 22.5% to Rs4,029.45 crore, falling short of the Rs4,113.5 crore estimated by analysts
Chennai: Hinduja flagship firm Ashok Leyland Ltd on Thursday reported a more than sixfold increase in net profit for the fiscal third quarter on higher sales and income from avenues other than its core business.
Net profit for India’s second largest commercial vehicle maker rose to ₹ 198.63 crore from ₹ 32.09 crore a year ago.
A Bloomberg poll had forecast a net profit of ₹ 184.70 crore.
Net sales of the Chennai-based firm rose 22.5% to ₹ 4,029.45 crore, falling short of the ₹ 4,113.5 crore estimated by analysts. It was ₹ 3,290.62 crore for the year-ago period.
Operating profitability, or earnings before interest, tax, depreciation and amortization, for the quarter rose to ₹ 429.72 crore as against ₹ 240.21 crore a year ago.
“Ashok Leyland is well on the path to sustained profitability. Committed to responsible growth in both topline and bottomline, we will continue to focus on success of our customers," said Vinod K. Dasari, managing director of Ashok Leyland, in a statement.
“Revenues grew 22% to ₹ 4,085 crore year-on-year, driven largely by the 23% growth in the volumes. Medium and heavy commercial vehicles segment, constituting 80% of volumes, grew strongly 27% year-on-year while the light commercial vehicle segment grew 9% year-on-year," said Bharat Gianani, senior research analyst at the Angel Broking.
Shares of Ashok Leyland closed 7.16% lower at ₹ 81.10 apiece on BSE, while the benchmark Sensex closed at 22,951.83 points, down 3.40%.
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