Despite a drop in volume and topline, commercial vehicle major Ashok Leyland Ltd managed to post record profits for the second quarter of the financial year.
The automaker clocked a double-digit growth in its consolidated net profit on the back of strong improvement in profitability as well as a one-time gain.
The Standalone EBITDA for the quarter was up at 11.6% (Rs. 1017 Cr) as against 11.2% (Rs. 1080 Cr) in the corresponding period last year.
The Chennai-based company reported a consolidated net profit of Rs 705.64 crore for the three months ended September, representing a 34% growth on a year-on-year basis.
This includes a one-time gain of Rs 119.02 crore arising primarily from a gain on fair valuation of investment in a subsidiary company.
“Our EBITDA margins have improved both sequentially and on YoY basis, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term," MD and CEO Shenu Agarwal said.
The truck and bus maker’s total volume during the quarter fell 8.5% to 45,624 units. This resulted in revenue from operations declining by 2.4% on year to Rs 11,147.58 crore.
“We are happy that we could improve our profitability by focusing on premiumization of our products, addressing cost compression opportunities, and continuously elevating our standards of customer service,” he said.