Ashok Leyland Q1 profit up by 233% to Rs 3.70 billion, beats estimate

Ashok Leyland has reported a 233 per cent growth in profit to Rs 3.70 billion during the quarter ended June 2018 as compared to Rs 1.11 billion, a year ago, beatingestimates.

Revenues rose by 47 per cent to Rs 62.50 billion as compared to Rs 42.58 billion. 

MHCV volumes including exports increased by 54% to 30647 numbers during the quarter, while LCV volumes increased by 33 per cent to 11481 numbers.

Vinod K. Dasari, Managing Director, Ashok Leyland Limited said that the Total Industry Volume registered 84 per cent growth primarily driven by surge in infrastructure spend resulting in higher sale of Tipper and MAVs. 

"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 further added, “Despite pressure on realization and raw material price increases, I am happy that we continue to post growth with profitability," said Dasari.

ALL has grown significantly in the Intermediate Commercial Vehicles (ICVs). The LCV and Bus business have also posted significant growth. Exports have also grown by 24 per cent, said Dasari, adding that the company will continue to pursue strategy of de-risking the company from cyclicality even as it pursue superior returns.

Gopal Mahadevan, CFO, Ashok Leyland added, “The company had seen a double-digit EBITDA margins for 13 of the 14 sequential quarters.”

Net cash in the Balance Sheet is Rs 11.65 billion. Focus on operating costs, product mix, and material cost optimisation will continue, even as the company pursue growth, said Mahadevan.