Ashok Leyland profits down 21% in Q3 FY19 due to higher input costs

Ashok Leyland claims to have consistent operating margins, despite market volatility that affected its Q3 FY19 performance.

Autocar Pro News Desk By Autocar Pro News Desk calendar 15 Feb 2019 Views icon10202 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

Ashok Leyland, flagship of the Hinduja Group, reported revenue of Rs 6,325 crores in Q3 for FY19. The net profit of the CV manufacturer in the quarter was Rs 381 crore, down by Rs 104 crore (21%) from Q3 FY18. YTD Q3 FY19 (9M) revenues touched Rs. 20,209 crores, up 15 percent over the corresponding period last year. Its profits in the nine months of FY2019 increased by 36 percent with Rs 1,330 crore as against Rs 975 crore.

Vinod K. Dasari, managing director, Ashok Leyland said, “We are proud to have achieved BS6 across the entire range of engines on our test beds. Coupled with the modularity of vehicles we are planning from 2020, it presents exciting opportunities for differentiating Ashok Leyland’s offerings to the customers. Equally, we hope that post elections, there will be greater spending on Defence as we will then see orders for the many tenders won by us over last couple of years. Lastly, we are excited about the LCV business. Now that the LCV business is merged with Ashok Leyland, we will offer the entire range of LCVs from 2020. This will help complete the range and Ashok Leyland will then be able to offer a full range of CVs which are also Left Hand Drive (LHD) compliant, giving a boost to exports. Equally, in near term, I expect gains from the BS6 pre-buy in next fiscal.” 

Gopal Mahadevan, CFO, Ashok Leyland added, “Total industry volume (TIV) for the quarter was lower by 7 percent owing to the high base in last year. If you were to look at the cumulative growth in TIV till Dec ’18 was 25 percent which is quite significant. LCV business is gaining momentum with market share in Dost segment touching 19 percent in Q3. Our financial performance has been satisfying given the twin challenges of pricing pressure and higher input costs as we continue to post double digit EBITDA margins. Our strong balance sheet position continues, and we are preparing for growth next year”.

RELATED ARTICLES
Hyundai Motor India surpasses 50,000 sales for the second time this fiscal in January

auther Autocar Pro News Desk calendar01 Feb 2023

Ongoing fiscal saw the company surpass the 50,000-unit monthly sales mark in July 2022; set to drive past the half-a-mil...

Tata Motors achieves best-ever monthly sales in January: 47,987 units

auther Autocar Pro News Desk calendar01 Feb 2023

January 2023 sales better previous best of 47,654 units in September 2022; the carmaker is now 48,266 units shy of its F...

Kia India records best-ever monthly sales of 28,634 units in January

auther Autocar Pro News Desk calendar01 Feb 2023

Seltos and Sonet remain best-selling products for Kia while the Carens, with 7,900 units, records its highest monthly sa...