Ashok Leyland Q2 net up 14% at Rs 334 crore

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Published: November 9, 2017 5:15:50 AM

Riding on the back of a 22% growth in medium and heavy commercial vehicle (M&HCV) domestic sales, Ashok Leyland Limited has reported a better than expected 14% year-on-year growth in its net profit for the quarter ended September at Rs 334.26 crore.

Medium and heavy commerical vehicle, Ashok Leyland LimitedRiding on the back of a 22% growth in medium and heavy commercial vehicle (M&HCV) domestic sales, Ashok Leyland Limited has reported a better than expected 14% year-on-year growth in its net profit for the quarter ended September at Rs 334.26 crore. (Image: Reuters)

Riding on the back of a 22% growth in medium and heavy commercial vehicle (M&HCV) domestic sales, Ashok Leyland Limited has reported a better than expected 14% year-on-year growth in its net profit for the quarter ended September at Rs 334.26 crore. It had recorded a net profit of Rs 294.41 crore in the same quarter last fiscal. The company also reported a 14% growth in EBITDA at Rs 611.80 crore during the quarter under review, below market expectations, as against Rs 536.49 crore in the same period last year.

Total volume during the quarter grew 23% to 40,989 units as compared to 33,440 units in the same quarter last fiscal. Export volumes increased by 39% year on year to 4,437 numbers during the quarter. As a result, revenue during the quarter increased by 31% to Rs 6,046.89 crore as against Rs 4,622.41 crore (excluding excise duty), as recorded during the same period last year. The results of the current year include the financial performance of its foundry division. The company’s share price on the BSE closed at Rs 694.40 on Wednesday, down 1.9% from the previous close.

Sales in medium and heavy commercial vehicles (M&HCV) in domestic market were up by 22% year on year to 26,964 units. The light commercial vehicles (LCV) volume during Q2 grew 18% to 9,588 units. Vinod K Dasari, managing director, Ashok Leyland, said: “It has been a satisfying performance. Our iEGR technology for BS-IV has been well accepted by customers.” Gopal Mahadevan, chief financial officer (CFO), ALL, said, “We could not stay away from the continued discounting by competitors. The last two months saw discounting in the range of Rs 2.25 lakh to Rs 2.75 lakh with an additional incentives. But we have registered a double-digit EBITDA margins in 10 out of the past 11 quarters.”

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