New Delhi: On the back of a 27 per cent growth in sales volume and aided by a substantial compression of financial expenses, Hinduja group flagship company Ashok Leyland has registered a 66.9 per cent rise in profit before tax for the third quarter of the current fiscal. The net profit has grown 72.3 per cent.
On a sale of 7,776 vehicles (6,134 vehicles in Q3, 2001-02), the sales turnover for the quarter has grown 24.8 per cent, to Rs 6,596.91 million (Rs 5,286.95 million), while the gross operating margin has improved by 4.1 per cent to Rs 719.50 million (Rs 691.37 million).
Helped by other income of Rs 12.36 million (Rs 2.26 million) and a 44 per cent compression in financial expenses, which have come down to Rs 128.69 million (Rs 231.57 million), and after a charge of Rs 241.80 million as depreciation (Rs 238.00 million), the profit before tax has risen to Rs 361.37 million (Rs 216.58 million).
After a provision of Rs 79.80 million (Rs 25.10 million) and Rs 48.70 million (Rs 56.30 million) for current taxation and deferred taxation, respectively, the net profit for the quarter has grown to Rs 232.87 million (Rs 135.18 million).
The company's shareholders had, at the extraordinary general meeting held on 18 January 2003, approved a proposal to adjust certain miscellaneous expenses (not written-off) and future diminution in value of fixed assets and investments against the securities premium account.
The company has filed the petition before the Madras High Court for confirmation, pending which no proportionate charge relating to those amounts has been made to the profit-and-loss account for the quarter under review. The consequent impact on the profit before tax and the net profit for the quarter amounts to Rs 98.02 million and Rs 66.12 million, respectively.
''We have completed the launch of the 1612 with H engine in North and South India. In both the regions, the product has been received well, on expected lines. The rest of the country will be covered in the next three months, which should boost our sales for the rest of the year,'' says Ashok Leyland managing director R Seshasayee. ''After a rather long lull, we already see signs of revival in demand from the southern and western regions, especially for multi-axled vehicles. This should favourably impact the last quarter's sales.''