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Ashok Leyland Q1 registered 156 percent profit in Q1.
The profit is largely due to the increase in sales of the vehicle maker"s trucks and buses. Sale of vehicles for the quarter was 21,400 numbers (7,693 nos.) with domestic volume at 19,460 nos. (6,790 nos) and international operations contributing 1,940 nos. (903 nos).
The growth is very impressive in terms of operating margins and volumes. The total profit from operations before other income, financial expenses and exceptional items has multiplied by 8 times at Rs. 173.93 crores. Profit before financial expenses and exceptional item increased over 5 times at Rs. 178.66 crores.
Financial expenses at Rs. 31.62 crores (Rs. 25.80 crores) have raised and this obviously reflects the impact of fresh loans raised during second half of last fiscal and also due to lower interest capitalization consequent to commissioning of Pantnagar plant in March '10.
According to R. Seshasayee, the MD of Ashok Leyland, the I Quarter numbers reflect the momentum that AL picked up in IV Qtr of the last fiscal which is reflected in the fact that AL has gained market share touching 27 percent.
He added that if freight demand continues to be robust, this growth should continue. However, there are some growth dampeners lurking in the form of supply chain constraints, rising interest rates, fuel and raw material prices. Going forward, Ashok Leyland envisages pre-buying prior to the introduction of the BS III emission norms across the country in October.
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