Ashok Leyland Q1 profit up by 233% to Rs 3.70 billion, beats estimate

MHCV volumes including exports increased by 54% to 30647 numbers during the quarter, while LCV volumes increased by 33 per cent to 11481 numbers

Ashok Leyland has reported a 233 per cent growth in profit to Rs 3.70 billion during the quarter ended June 2018 as compared to Rs 1.11 billion, a year ago, beatingestimates.

Revenues rose by 47 per cent to Rs 62.50 billion as compared to Rs 42.58 billion.

MHCV volumes including exports increased by 54% to 30647 numbers during the quarter, while LCV volumes increased by 33 per cent to 11481 numbers.

Vinod K. Dasari, Managing Director, Ashok Leyland Limited said that the Total Industry Volume registered 84 per cent growth primarily driven by surge in infrastructure spend resulting in higher sale of Tipper and MAVs.

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“There was also the impact of 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 further added, “Despite pressure on realization and raw material price increases, I am happy that we continue to post growth with profitability,” said Dasari.

ALL has grown significantly in the Intermediate Commercial Vehicles (ICVs). The LCV and Bus business have also posted significant growth. Exports have also grown by 24 per cent, said Dasari, adding that the company will continue to pursue strategy of de-risking the company from cyclicality even as it pursue superior returns.

Gopal Mahadevan, CFO, Ashok Leyland added, “The compan had seen a double-digit EBITDA margins for 13 of the 14 sequential quarters.”

Net cash in the Balance Sheet is Rs 11.65 billion. Focus on operating costs, product mix, and material cost optimisation will continue, even as the company pursue growth, said Mahadevan.(News Source : BS)

COMPANY HISTORY – ASHOK LEYLAND LTD. (ASHOKLEY)

Ashok Leyland Ltd is the 2nd largest manufacturer of commercial vehicles in India the 4th largest manufacturer of buses in the world and the 12th largest manufacturer of trucks globally. The company’s products include buses trucks engines defense and special vehicles. From 18 seater to 82 seater double-decker buses from 7.5 ton to 49 ton in haulage vehicles from numerous special application vehicles to diesel engines for industrial marine and genset applications Ashok Leyland offers a range of products.

The company is the flagship of the Hinduja Group. Headquartered in Chennai India Ashok Leyland’s manufacturing footprint spreads across the globe with 9 plants; including one each at Great Britain and Ras Al Khaimah (UAE). The company’s Joint Venture partners include John Deere (USA) for Construction Equipment Continental AG (Germany) for Automotive Infotronics and the Alteams Group for the manufacture of high-press die-casting extruded aluminum components for the automotive and telecommunications sectors.Ashok Leyland Ltd was incorporated in the year 1948 with the name Ashok Motors.

The company was set up in collaboration with Austin Motor Company England for the assembly of Austin cars. In The year 1949 they commenced production at the factory situated at Ennore south of Madras. Also they rolled out the first indigenously assembled A40 Austin car.In the year 1950 the company made an agreement with Leyland UK in which Ashok Motors got sole rights to import assemble and progressively manufacture Leyland trucks for seven years. In the year 1954 the Government approved the progressive manufacture of Leyland commercial vehicles and a license was granted for the manufacture of 1000 Comets a year. In the year 1955 the company name was changed to Ashok Leyland Ltd with equity participation from Leyland Motors Ltd.In the year 1967 the company launched ‘Titan’ the first Indian-made double decker with 50% indigenous components. In the year 1970 the company designed and delivered 1000 numbers of the 6×4 ‘Hippo’ Tipper to the Indian Army based on their specific requirements.

In the year 1972 the license was granted to manufacture 10000 vehicles a year. In the year 1976 the company introduced the ‘Viking’ the first ever bus with an alternator and a unique front overhang that facilitated front entry. In the year 1978 they introduced India’s first rear-engine bus ‘Cheetah’.In the year 1980 the company inaugurated their second plant in Hosur. They launched India’s first 13-ton truck ‘Tusker’ with a 125 hp engine. Also they launched country’s first multi-axle truck ‘Taurus’. In the year 1982 they introduced India’s first vestibule or the articulated bus. They inaugurated two new manufacturing facilities at Bhandara (Maharashtra) and Alwar (Rajasthan) in March 1982 and August 1982 respectively.

In the year 1993 the company received ISO 9002 certification. In the year 1995 they received ISO 9001 Certification. Aslo they set a driver training facility at Namakkal. In the year 1996 the company set up their second plant at Hosur. In the year 1997 they launched the Stallion an all-terrain logistic vehicle. Also they launched India’s first CNG-powered bus. In the year 2002 the company developed the country’s first Hybrid Electric Vehicle and showcased at Auto Expo 2002…

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