Ashok Leyland Ltd (ALL), the second-largest commercial vehicle manufacturer in the country, today reported a 24 per cent increase in net profit for the quarter ended September 2001. Net profit stood at Rs 18.5 crore compared to Rs 14.9 crore in the corresponding period last year. The company, in a statement, said the results were affected by work stoppage in September at one of its factories at Hosur.

The company was able to post higher profits mainly because of fall in interest and depreciation cost. While the interest cost fell by 9 per cent to Rs 19.1 crore, depreciation declined by 4 per cent to Rs 20.8 crore.

Total expenditure during July-September 2001 increased by 4 per cent to Rs 582.9 crore from Rs 562.9 crore in July- September 2000. Of the total expenditure, raw materials cost was Rs 360.1 crore (Rs 351.1 crore) and staff cost was Rs 81.9 crore (Rs 88.9 crore).

R Seshasayee, managing director, said, "A favourable product mix in the domestic market helped us perform better. Substantial contributions to our improved profitability have come from cumulative and incremental benefits from organic internal efficiency improvements."

ALL has reported a net profit of Rs 9.1 crore on a turnover of Rs 1220.5 crore during the six months ended September 2001 against a net loss of Rs 4.7 crore on a turnover of Rs 1063.4 crore. Interest and depreciation claimed during the first half stood at Rs 39.3 crore and Rs 45.7 crore, respectively.