Ashok Leyland posts lower than expected growth, net profit rises 37.4%

Commercial Vehicle major Ashok Leyland Ltd (ALL) has registered a growth of 37.4 per cent in net profit for the second quarter of the fiscal, lower than the expectations of many of the analysts.  

The company has posted a net profit of Rs 4.59 billion as compared to Rs 3.34 billion same quarter last year. The total income has seen a growth of 24.5 per cent at Rs 76.36 billion during the quarter as against Rs 61.32 billion during the same quarter last year.

The brokerage firm was expecting the net profit to be at around Rs 5.09 billion-Rs 5.83 billion during the quarter. Some of the analysts were also expecting a revenue of over Rs 77 billion.

The company achieved an EBITDA margin of 10.6 per cent as against 10.1 per cent in the same period last year. Despite market volatility, it has posted consistent operating margins with double-digit EBITDA margins in 14 of the past 15 quarters, claims the company.

Vinod K Dasari, managing director, Ashok Leyland Limited said "In a challenging market scenario and an aggressive competitive environment, we have registered a record financial performance. After bringing the world's first BS4 engine with intelligent EGR, we continued to provide innovative world-class products like the world's first inline pump based 854 engine. 

Gopal Mahadevan, CFO, Ashok Leyland added, "The growth in topline has helped in our financial performance. While input cost increases continue, we are attempting to neutralize this effect through effective cost management. We continue to be zero debt as at the end of the quarter".