Ashok Leyland end Q3 in profit, foresees growth momentum
Ashok Leyland reports net profit of Rs. 32.09 crores for Q3 FY 2014-15 against net loss of Rs. 167.21 crores for Q3 FY 2013-14. For YTD, operating profit was Rs. 588.62 crores over operating loss of Rs. 17.38 crores for the same period last year.
Vinod K. Dasari, Managing Director says the results mark a significant turnaround for Ashok Leyland.
Fortified by export orders from Sri Lanka and Africa, Ashok Leyland is hopeful of making inroads to newer markets. Sustainability through network expansion and opening small assembly centres in overseas markets similar to the one in Ras Al Khaimah (UAE) is in order. The commercial vehicle manufacturer is confident that the Indian market is turning around, and the worst may be behind us.
The company forecasts growth momentum to continue and looks to end the fiscal on a good note. Total commercial vehicle industry volume has grown 10 pct YoY. A stable and optimistic business environment, improved profitability of fleet owners, and pre-buying before excise duty concession withdrawal contributed to 2014 Q4 sales increase.
Ashok Leyland reported total sales of 9290 unit in December 2014 over 6275 units sold in Dec 2013, equating to 48 pct sales growth. Sales comprised of 7210 M&HCV units and 2080 LCV units over 3890 and 2385 units sold in December 2013. While Medium and heavy commercial vehicle sales grew by 85 pct, LCV sales decline was reported at 13 pct.
For the FY 2014-15 (Apr – Dec 2014), the manufacturer sold 70743 units over 63294 vehicles sold in Apr – Dec 2013, equating to 12 pct sales growth. Sales comprised of 51394 M&HCV units and 19349 LCV units over 41518 and 21776 units sold in Apr – Dec 2013. Medium and heavy commercial vehicle sales grew by 24 pct, and LCV sales growth was reported at 11 pct for Q1, Q2 and Q3 of FY 2014-15. Ashok Leyland’s single-minded focus on fiscal discipline and customer profitability is reflected in company results.