Ashok Leyland net at Rs 97 million in Q1

By Our Corporate Bureau Bureau | 26 Jul 2002

1

Chennai: Riding a volume growth of 19.2 per cent, the Hinduja group flagship Ashok Leyland Ltd has nearly trebled its gross profit for the first quarter of the current fiscal and has reported a net profit of Rs 97.47 million.

The sales turnover for the quarter, at Rs 6,497.30 million (Rs 5,830.72 million in Q1 2001-02), is up 11.4 per cent as against an 8 per cent increase in expenditure, from Rs 5,450.03 million to Rs 5,891.03 million. As a result, the gross operating margin has improved by 59.3 per cent, to Rs 606.27 million (Rs 380.69 million).

Financial expenses have come down 23.1 per cent, to Rs 176.17 million (Rs 228.82 million), whereas depreciation is higher, at Rs 257.18 million (Rs 249.27 million). Profit before tax (PBT) before extraordinary expense has improved significantly, to Rs 195.64 million (a loss of Rs 86.74 million).

The results reckon an item of extraordinary expense: amortisation of the voluntary retirement scheme compensation, to the extent of Rs 40.27 million for the quarter (Rs 7.30 million). PBT after extraordinary expense stands at Rs 155.37 million (a loss of Rs 94.04 million). Provisions have been made for current and deferred taxation of Rs 48.90 million and Rs 9 million respectively, as against NIL provision in Q1 2001-02.

In the company's total sales volume of 7,681 vehicles for the quarter (6,446 vehicles in Q1 last fiscal), domestic vehicle sales were at 7,173 vehicles (6,182 vehicles), up 15.9 per cent. In the process, the company marginally improved its domestic vehicle market share from 32.4 per cent during 2001-02 to 32.9 per cent for the quarter.

Corrections are already happening in the skewed pattern of growth the industry witnessed last year, says Ashok Leyland managing director R Seshasayee. While the northern region continues to grow robustly in the goods segment, south has returned to a growth phase, demand there improving some 20 per cent. "We have capitalised on this favourable factor by wresting volumes through market-share gains. Passenger volumes are expected to stabilise during the year."

The annual general meeting of the company has approved a 45 per cent dividend for the year 2001-02, when the company's net profit stood at Rs 922.56 million.

Highlights                                                                    Rs million

2002-03 Q1 2001-02 Q1
Sales Turnover 6497.30 5 830.72
Gross operating margin 606.27 380.69
Gross profit 452.82 162.53
PBT 155.37 (94.04)
Net profit 97.47 (94.04)
EPS (not annualised) Rs 97.47 (0.79)

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