Ashok Leyland H1 PAT zooms 123% to Rs 682.72 million

Chennai: Powered by a 34 per cent growth in sales turnover, Hinduja group flagship Ashok Leyland has registered a 157 per cent jump in its net profit for the second quarter to Rs 534.64 million (Rs 208.37 million). The quarter's performance has, in turn, boosted profitability for the first half-year ended 30 September 2003.

The company's sales turnover for the first half has grown 20.4 per cent to Rs 16,466.50 million (Rs 13,679.28 million). Other income has contributed Rs 111.20 million (Rs 72.31 million). Financial expenses are substantially lower at Rs 180.62 million (Rs 340.03 million), thanks to working capital contraction, reengineering of loan portfolio as well as lower interest rates.

The gross profit for the first half has grown 35 per cent to Rs 1,504.60 million (Rs 1,113.94 million). After charging a lower Rs 480.67 million (Rs 541.41 million) to depreciation, PBT (before extra ordinary item) has gone up 78.8 per cent to Rs 1,023.93 million (Rs 572.53 million).

Profit before tax has more than doubled to Rs 1,000.52 million (Rs 485.84 million) after the extraordinary item of amortised voluntary retirement scheme (VRS) compensation at Rs 23.41 million (Rs 86.69 million). Despite higher tax provisions — Rs 266.80 million (Rs 163.20 million) for current taxation and Rs 51.00 million (Rs 16.80 million) for deferred taxation — the company's net profit for the first half has grown to Rs 682.72 million (Rs 305.84 million), up 123.2 per cent.

Sales turnover for the quarter is Rs 9,621.81 million (Rs 7,181.98 million); other income is also higher at Rs 93.37 million (Rs 49.59 million). With financial expenses down 42 per cent at Rs 95.10 million (Rs 163.86 million), gross profit grew 59 per cent to 1,051.47 million (Rs 661.12 million).

Depreciation is lower at Rs 250.71 million (Rs 284.23 million), for PBT (before extraordinary income) of Rs 800.76 million (Rs 376.89 million), up 112.5 per cent. Amortised VRS compensation is lower at Rs 17.63 million (Rs 46.42 million), leading to a 137-per cent growth in PBT, at Rs 783.13 million (Rs 330.47 million). Provisions for taxation are higher, at Rs 210.41 million (Rs 114.30 million) for current taxation and Rs 38.08 million (Rs 7.80 million) for deferred taxation.

Says Ashok Leyland managing director R Seshasayee: "High market demand has pushed up capacity utilisation and we should benefit from it. At the same time, unlike in the past few years, there is a definite upward trend in material prices which we have not yet passed on to the market."