Ashok Leyland gains post Q4 results

The stock moved higher by nearly 6% to Rs 103 on the BSE in noon deal on back of heavy volumes.

Ashok Leyland has moved higher by nearly 6% to Rs 103 on the BSE in noon deal after the company reported 91% year on year jump in profit after tax before exceptions at Rs 456 crore for the quarter ended March 2016 (Q4FY16), on back of strong revenue growth. The automobile company recorded a profit of Rs 238 crore in a year ago quarter.

Revenues increased 32% to Rs 5,955 crore, against Rs 4,506 crore, same period last year.

EBITDA (earnings before interest, tax and depreciation) margins improved 250 basis points from 10.1% to 12.6% during the quarter.

“Increase in sale volume, continued reduction in operating costs and a good product mix, helped EBITDA growth,” Ashok Leyland said in a statement.

Post exceptional items, the net profit of the company declined to Rs 77 crore in Q4FY16 against Rs 230 crore in Q4FY15.

The company made provisions (net) of Rs 389 crore for impairment in investments in certain joint ventures as well as overseas subsidiaries.

Vinod K. Dasari, Managing Director, Ashok Leyland, “We are reviewing our portfolio of investments and are rationalizing them. In the current year we have decided to impair some of our investments and this in line with our strategy of increasing our focus on the core business as we move forward. We would be completing this rationalization process by end of the FY 17”.

Till 01:11 PM, a combined 24.17 million shares changed hands on the counter on the NSE and BSE.