Ashok Leyland Q1 profit jumps over 3-fold to Rs 370.1 crore

New Delhi: Hinduja flagship firm Ashok Leyland has reported over three-fold jump in standalone net profit at Rs 370.1 crore in the first quarter ended June 30, riding on robust sales.

The company had posted standalone net profit of Rs 111.23 crore in the same quarter last fiscal, Ashoky Leyland said in a BSE filing.

The company said revenue from operations during the period under review was at Rs 6,250.12 crore. It was at Rs 4,534.46 crore in the same quarter last fiscal.

The two figures are not comparable as after GST implementation on July 1, 2017, revenue from operation is shown as net of GST.

Ashok Leyland Managing Director Vinod K Dasari said, during the quarter, the total industry volume registered 84 percent growth primarily driven by surge in infrastructure spend resulting in higher sales.

"There was also the impact of base effect. We continued our focus on profitable growth and tight control on working capital, in a market which operated on heavy discounting and credit push," he added.

Despite pressure on realisation and raw material price increase, the company continued to post growth with profitability, Dasari said.

"We have grown significantly in intermediate commercial vehicles (ICVs). The light commercial vehicles (LCV) and bus business have also posted very good growth. Exports have also grown by 24 percent," he said.

During the quarter, Ashok Leyland saw its medium and heavy commercial vehicle (MHCV) volumes rise by 54 percent at 30,647 units, while LCVs increased by 33 percent to 11,481 units.

On the outlook, Dasari said, "We will continue to pursue our strategy of de-risking the company from cyclicality even as we pursue superior returns."