Ashok Leyland profit jumps 450%

Ashok LeylandThe markets are all set for Ashok Leyland which has seen a 450% rise in its net profit for the quarter ending December 31. The profits have surged from merely Rs. 18.9 crore for the corresponding period in the last financial year to reach Rs 104.6 crore this year.

Sales revenues have risen from Rs 1,004.49 crore for the same period last year to reach Rs 1,815.53 crore this year, registering 81% increase. The production has increased from 19,411 vehicles compared to the last year figure of 6,060, increase of 220%.

The phenomenal ascend in its profits is a result of better market conditions for commercial vehicles. What is good for the company is that it has finally managed to show a turnaround and with help of proper capital management and with help of many marketing shifts like credit sale to 'cash-and-carry' system, the company managed to make most of the growth in its respective segment.

Talking on the occasion, R Seshasayee, Managing Director said, "This quarter signals the return to normalcy. The common theme in the results is the improved profitability even though sales volume recovery is not quite complete." The company expects even better results in the upcoming Q4 results.