Ashok Leyland's Q2 profits up 89%; revenue up 72%

Hinduja Group flagship Ashok Leyland has registered a rise in profits by 89% at Rs. 167.06 crores (Rs. 88.61 crores) during the second quarter of this fiscal. Revenues also jumped by 72% at Rs. 2,713.95 crores as against Rs. 1,577.28 crores for the corresponding quarter of the previous year.

This increase in both profits and revenue ride on a record sale of 45,989 vehicles (21,990 nos.) for the first half of the current fiscal which helped in pushing the Company’s market share in Medium and Heavy Commercial Vehicles to over 27%.

During the quarter, all vehicle segments witnessed healthy growth. International operations in the quarter also registered a growth of 39% at 2,350 nos. (1,695 nos.).

Profit from operations before other income, financial expenses and exceptional items at Rs. 242.20 crores was higher by 110% compared to Rs. 115.07 crores.

Other expenses at Rs. 199.30 crores was higher than Rs. 136.21 crores for the second quarter of the previous fiscal. Financial expenses were also higher at Rs. 39.49 crores (Rs. 17.00 crores) reflecting the impact of borrowings made during the last twelve months. Depreciation was higher at Rs. 64.06 crores as against Rs. 50.58 crores consequent to the commissioning of the Pantnagar plant. Margins have improved over previous quarter primarily due to higher sale volume.

“With the economy continuing to be strong, industrial productivity remaining steady and freight generating sectors showing robust growth, everything points towards the market remaining bullish going forward,” said Mr. R. Seshasayee, Managing Director, Ashok Leyland. “Although the present quarter could be a trifle slower due to the change in emission norms, we see the market strengthening in the last quarter on the back of a good agricultural output and  continued buoyancy in the economy,” he added.