Ashok Leyland Ltd. reported a 15.5% rise in third-quarter standalone net profit (adjusted for mark-to-market foreign currency losses) to ₹249 crore.
“Last year, the company reported net profit of ₹215.42 crore (before adjusting ₹1.71 crore towards mark-to-market foreign currency losses),” said chief financial officer Gopal Mahadevan. “This year, the mark-to-market loss was ₹63 crore. If we add the losses, then our net profit is up by 15%.”
In the three months ended December 31, 2016, revenue increased by 8% to ₹4,723 crore, while exports rose by 11% to 2,942 units .
Sales volume in medium and heavy commercial vehicles increased to 25,285 units from 23,176 units in the comparable year-earlier period.
Vinod K. Dasari, Ashok Leyland’s Managing Director and CEO, said: “Q3 has been quite challenging for the industry, primarily due to the steep increase in material costs.
“Demonetisation had an impact but the industry is recovering from it. Despite these challenges, we have maintained healthy operating margins. Pre-buy in fourth quarter owing to BS-IV implementation in FY18 along with our recent introductions in the ICV segment are expected to have a positive impact on our volumes in the current quarter.”
“Prevailing challenges in the market notwithstanding, we continue to be focused on profitable growth,” the CFO said.
