Smart growth in M&HCV sales helps Ashok Leyland post record profit

Ashok Leyland, the second largest commercial vehicle maker in India, has registered a 39% increase in turnover at Rs 18,822 crore in FY2015-16, as against Rs 13,562 crore for the previous fiscal.

Profit after tax before exceptions stood at Rs 1,111 crore as against Rs 233.9 crore, up 375%. Profit after tax after exceptions for the year stood at Rs 722 crore, as against Rs. 335 crore in 2014-15, recording a growth of 115%.

A strong growth in medium and heavy commercial vehicles, a smart increase in sales volume, continued reduction in operating costs and a good product mix, helped earnings before interest, tax and depreciation grow to Rs 2,166 crore, at 11.5% of total revenue, against Rs 1,027 crore, 7.6% of total revenue in the previous year.

Ashok Leyland’s domestic M&HCV sales volume for 2015-16 totaled 98,809 vehicles with a growth in market position across the country and segments. LCV sales comprised 30,695 units, while international volumes for M&HCVs de-grew by 2% due to slowing sales in some markets like Sri Lanka and Saudi Arabia. Sales of defence vehicles registered healthy growth.

Announcing the annual results in Chennai yesterday, Vinod K Dasari, managing director, Ashok Leyland, said, “It has been a very successful and a fulfilling year for us. The investment we made in new products, the expansion of network as well as continued efforts in driving operational efficiency has helped us maintain the growth momentum. We are now poised to seize the opportunity the market presents in the immediate future.”

“All this has been achieved with the valued support of our suppliers and dealers who have taken us from strength to strength. While we significantly improved our presence across the country the year also witnessed our expanded presence across the globe”, he added.

He added that the company will continue to invest in new products, technologies as well as enhance its domestic and global network. “We are reviewing our portfolio of investments and are rationalising them. We would be completing this rationalisation process by end of FY2017,” concluded Dasari.