Ashok leyland Net jumps 450%

Hinduja group flagship Ashok Leyland (ALL) posted a spectacular performance in the third quarter ended December 31, 2009, with a 450% jump in net profit at Rs 104.6 crore against Rs 18.9 crore in the same period in the previous year. Net sales spurted by 81% to Rs 1815.5 crore (Rs 1,004.5 crore). In the first nine months, net profit increased 47% to Rs 201 crore (Rs 136.7 crore) though net sales dropped by 10% to Rs 4,305.7 crore (Rs 4,763 crore). In the third quarter, the company boosted vehicle sales by 101% 16,129 numbers (8,011) and parts sales by 91%. In a statement on Sunday, ALL said the phenomenal improvement in profitability is to be viewed in the context of a near collapse situation that prevailed during the same quarter in 2008-09. Despite a 220% increase in production at 19,411 vehicles (6,060), it had contained financial expenses at Rs 16.2 crore (Rs 39.4 crore), thanks to prudent working capital management, shift from credit sale to ‘cash and carry’ system and an appropriate reduction in inntories. In the third quarter, employee costs increased by 42% to Rs 173.6 crore (Rs 122.5 crore) mainly due because in the same quarter in the previous year it had cut working days and employees had taken a voluntary salary cut. The current year also has the impact of wage settlement at Hosur units. ALL MD R Seshasayee said: “This quarter signals the return to normalcy. The common theme in the results is the improved profitability though recovery in sales volume is not quite complete.”

For Further:economictimes.indiatimes.com/Earnings/Ashok-Leyland-net-zooms-450/articleshow/5521676.cms