Ashok Leyland, flagship of the Hinduja Group, has registered a 6.3% increase in turnover at R2,495.5 crore for the quarter ended June 30, 2011, compared with R2,348 crore reported during the same quarter last financial year. Net profit was at R86.3 crore against R122.6 crore for the corresponding quarter in the previous year.
Sale of vehicles for the quarter stood at 19,277 units compared with 21,400 units sold in the same period last year with domestic volumes at 16,738 units against 19,460 units. International operations contributed 2,539 units against 1,940.
The drop in domestic volumes was primarily in the south, the company?s stronghold for long, which also resulted in a loss of overall market share.
The company?s EBIDTA was at R244.6 crore during the quarter, which is marginally better at R234.8 crore in the previous year despite higher employee costs.
Depreciation was higher by 37.7% at R84.7 crore against R61.5 crore. Financial expenses rose to R53.3 crore against R31.6 crore on the back of an increase in working capital which is now being brought under control.
?After the robust growth of 2010-11, the first quarter of this fiscal has seen a significant moderation,? said Vinod K Dasari, managing director, Ashok Leyland.
?The rise in cost of ownership due to spiraling input costs, rise in fuel prices, hardening interest rates and a fall in freight availability contributed to this moderation. While our domestic performance was subdued, the over 30% jump in our exports helped shore up our numbers,? he added.
Speaking about the quarter ahead, he said, ?We are cautiously optimistic of the coming months because the fundamentals remain strong and the India growth story continues. We have the launch of DOST, the first light commercial vehicle from the Ashok Leyland-Nissan stable and the construction equipment products in association with John Deere, which will make the coming quarter interesting.?
