Ashok Leyland Ltd. reported a more than three times growth in standalone net profit. The profit is for the quarter ended June to ₹370 crore from ₹111 crore a year earlier.
The company recorded a growth of about 38% in revenue to ₹6,250 crore. Its domestic medium and heavy commercial vehicles volume grew 60%. Including exports, the volume rose 54% to 30,647 units. Light commercial vehicles volumes increased 33% to 11,481 units.
The farm’s MD, Vinod K. Dasari said “Total industry volume registered 84% growth primarily driven by a surge in infrastructure spending resulting in the higher sale of tipper and multi-axle vehicles. There was also the impact of the 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 also added.
Chief financial officer, Ashok Leyland Gopal Mahadevan said, “Our net cash in the balance sheet is ₹1,165 crore. Focus on operating costs, product mix, and material cost optimization will continue, even as we pursue growth”.
The auto major posted significant growth in Intermediate Commercial Vehicles and the bus business.