Ashok Leyland Ltd., the flagship of the Hinduja Group, reported a more than three times growth in standalone net profit for the quarter ended June to Rupees 370 crore from Rupees 111 crore a year earlier, aided by a surge in infrastructure spending.
The company recorded a growth of about 38% in revenue to Rs. 6,250 crore.
Its domestic medium and heavy commercial vehicles volume grew 60%. Including exports, the volume rose 54% to 30,647 units. Light commercial vehicles volumes increased 33% to 11,481 units.
The auto major posted significant growth in Intermediate Commercial Vehicles and the bus business.
Exports grew 24%, the company said in a regulatory filing.
“Total industry volume registered 84% growth primarily driven by a surge in infrastructure spend resulting in higher sale of tipper and multi-axle vehicles. There was also the impact of the base effect,” said the firm’s MD, Vinod K. Dasari.
“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 said.
‘Supply prices rise’
Acknowledging pressure on realisation and a rise in raw material prices, he said the firm would continue to pursue its strategy of derisking from ‘cyclicality’ even as it pursues ‘superior’ returns.
“Our net cash in the balance sheet is Rs. 1,165 crore. Focus on operating costs, product mix and material cost optimisation will continue, even as we pursue growth,” said Gopal Mahadevan, chief financial officer, Ashok Leyland.