On Thursday Hinduja Group’s heavy marketable vehicle manufacturer, Ashok Leyland accounted an increase of 101% expansion in its net profit to R290.78 crore during the first quarter on the rear of substantial expansion in quantity in the medium and heavy vehicle segment. According to information obtainable with Bloomberg, this is the most excellent performance of the corporation as the fourth quarter of FY11 when it accounted a net profit of R298 crore on the rear of a high-quality performance in the serious vehicles segment. Throughout the quarter beneath review, sales of trucks and buses augmented by 12% y-o-y to 24,027 units which led to an augment of 10.6% rise in revenues to R4175.79 crore. Vinod K Dasari, Managing Director, Ashok Leyland has also further conveyed that, we evidence a household volume expansion of 18.5% as next to the industry expansion of 14.5%. I am happy to note that we carry on outperforming the industry.
Our plan on network development, operational efficiency, talent development, and innovative products continue. The turnaround in the fortunes of the corporation commenced from the third quarter of FY14 when the demand for trucks and buses commenced to revive on the back of augmented activity in the manufacturing, infrastructure and increased availability of cargo from the agriculture sector. Due to the financial hold up which adversely impacted volumes in the heavy vehicles segment, Ashok Leyland accounted a loss of R164 crore in FY14 but recovered in FY15 with a profit of R133.89 crore. The nation’s second major heavy vehicle producer reported its uppermost ever net profit of R1070.68 crore in FY 16. Due to the enhanced financials, Ashok Leyland’s money cost in the primary quarter of the economic halved to R33.82 crore from R70.20 crore in the year before period. In June volumes in the heavy vehicles section reasonable as dealers in north India stopped buying vehicles because of the short freight rates and rise in diesel prices while in the southern part the volumes were hit by assembly elections in Tamil Nadu, and non registration of BS III commercial vehicles in states like Telengana and Andhra Pradesh. Sources though anticipate substantial increase in volumes as fleet owners will buy vehicles previous to the completion of BS IV by April 2017 which will augment the price of the vehicles.