Ashok Leyland (ALL) has reported a 71% jump in its net profit to R294.41 crore for the quarter ended September, against R172.20 crore recorded in the corresponding quarter last financial year. The company has achieved a 11.6% EBITDA margin in Q2 against 12.6% in the same period last year.
However, the total revenue decreased 7% to R4,911.62 crore during the quarter, compared with R5,274.37 crore in the year-ago period. This is due to a 15% fall in M&HCVs sale to 25,340 units, compared with 29,851 units sold in the same quarter last financial year.
Vinod K Dasari, managing director, ALL, said: “The highlight for us this half year is the sustenance of operating margins as we stayed away from deep discounting. This is in spite of it being a tough second quarter for the industry, due to base effect. Our continued focus on controlling costs has paid rich dividends and has helped us shore up bottomline. We are confident that the coming months will see a positive trend for the commercial vehicle industry on the back of good monsoon and economic revival. We expect the recent introductions in the ICV segment-Guru (truck) and Sunshine (bus) to have a very positive impact on our volumes.”