Cost controls, better product mix boost Ashok Leyland’s Q1 turnover 5 percent

Ashok Leyland has recorded a 4.8 percent increase in turnover to Rs 2,477.80 crores for the quarter ended June 30, 2014, as against Rs 2,363.81 crores of the corresponding quarter in 2013. Sale of M&HCV in the quarter stood at 14,949 numbers (14,900 in the year-earlier quarter). Sales of LCVs stood at 5,032 units (as against 6,824 in the year-earlier period); the drop was primarily due to a correction in pipeline inventory.

 Vinod K Dasari, managing director said, “Having delivered strong results in Q4 last year, Ashok Leyland continues to improve its performance this quarter too. We have gained marketshare in medium and heavy CVs compared to the same quarter last year, despite lower industry volumes. Enhanced sales realisation through better pricing, a tight rein on costs, and a better sales mix, have resulted in a much stronger performance than Q1 FY 2014.”

An EBITDA margin of 4.7 percent for the first quarter reflects ALL’s efforts at improving net realisation, reducing material costs, and controlling operating overheads; and is a significant improvement over 1 percent for the corresponding quarter of the previous fiscal year.

The company made a net loss of Rs 47.95 crores as against a net loss of Rs 141.75 crores in the same period last year. Dasari said, “Although total industry volume fell 10 percent, we increased our share by 2.3 percent largely on account of the outstanding performances of our ICV, tipper, and tractor segments. Our new products such as the Boss continue to perform well, and several variants are planned in our LCV range as well. We are also quite excited about the prospects of Captain and Janbus.”