Ashok Leyland's Q2 profit soars, posts 71% increase

The company's total income, however, dropped by 7% to Rs 4911.62 crore in the same period in 2016

Ashok Leyland Limited has reported a 71 per cent jump in net profit at Rs 294.41 crore during the September quarter in the current financial year as against Rs 172.20 crore in the corresponding period last year.

Gopal Mahadevan, CFO, Ashok Leyland attributed the increase to growth in exports, which rose by 34 per cent. Among other factors identified by Mahadevan were increasing supply of defence kits, increased business operations dealing in parts and initiatives taken to control material cost and reduce interest cost.

Vinod K Dasari, managing director, Ashok Leyland said the highlight for the company this year was the sustenance of operating margins as it stayed away from deep discounting.

"Our continued focus on controlling costs has paid a rich dividend and helped us shore up the bottom line. We are confident that the coming months will see a positive trend for the commercial vehicle industry," said Dasari.

The company, which had reported an impairment loss of Rs 157 crore in the second quarter of 2015 owing to its investments in joint ventures and subsidiaries, did not report any such loss during in the same period this year.

Total income of the company dropped by almost 7 per cent to Rs 4911.62 crore from Rs 5274.37 crore in the same quarter in the previous financial year.