Ashok Leyland Q1 profit rises 2% as revenue jumps 10% to Rs 10,750 crore
The company had posted net profit of Rs 658 crore in the corresponding period of the last financial year.
Consolidated revenue rose 10% to Rs 10,750 crore in the period under review.
On a standalone basis, Ashok Leyland reported its highest-ever net profit of Rs 609 crore as against Rs 594 crore in the same quarter previous year. However, due to rising material costs EBITDA (Earnings before Interest, Tax, Depreciation & Amortisation) margin stood at 10.1% as against 11.1% in the year-ago period.
“The company has delivered another strong quarter, underpinned by disciplined execution and effective cost management”, said Dheeraj Hinduja, Chairman of the company said, adding, “Demand across key segments remains robust, and future prospects continue to be encouraging. Government initiatives such as Parivartan will further accelerate fleet modernisation and support the long-term growth of the commercial-vehicle industry.”
The company’s electric mobility subsidiary, Switch Mobility, also continues to gain traction, he said.
“While rising material costs remain a concern, Ashok Leyland is taking several initiatives towards better price realisation, rigorous cost-saving efforts, product and business mix improvement, and opportunity-based inventory build-up”, said Shenu Agarwal, Managing Director & CEO, Ashok Leyland.Last quarter, Ashok Leyland posted its highest ever sales of commercial vehicles at 48,763 units, compared to 44,238 units in the same period last fiscal.
The company announced investments of up to £25 million (approximately Rs 325 crore) in Optare Plc. UK, subsidiary, as equity in one or more tranches.
It also announced investments of up to Rs 500 crore in equity shares of Hinduja Housing Finance, a step-down subsidiary, by way of secondary purchase of shares from Hinduja Leyland Finance, a material subsidiary, in one or more tranches.
