Commercial vehicle maker Ashok Leyland reported a net profit of ₹476 crore for the fourth quarter ended March 2017, as against a loss of ₹141 crore in the same quarter of the previous year.
The Hinduja flagship company said its revenue for the quarter under review increased by 13% to ₹7,057 crore (₹6,237 crore).
The revenue growth came on the back of a 10% increase in sales of medium and heavy commercial vehicles to 38,643 units from 35,247 units in the same quarter the previous year. Sales of light commercial vehicles increased by 3% to 8,978 units from 8,745 units.
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The company claimed that it had improved its market share in the medium and heavy commercial vehicles space to 36.3% during the quarter, up from 34% in the same quarter the previous year.
For the full financial year, 2016-17, the company reported a revenue of ₹21,332 crore against ₹19,993 crore in the preceding year. The net profit stood at ₹1,223 crore against ₹390 crore in the previous year (after exceptional items).
“The results for the full year include the financial performance of HFL for the period October 1, 2016, to March 31, 2017. The tax savings from the merger of HFL added ₹324 crore to the profit after tax,” according to a statement.
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Market share rises
Ashok Leyland reported a 4% increase in sales of medium and heavy commercial vehicles during 2016-17 to 102,313 units. This had helped improve its market share to 33.8% from 32.7%.
Focus on cost control had helped the company achieve double-digit EBITDA (earnings before interest, tax, depreciation and amortisation) for the ninth quarter in a row as a percentage of revenue, Managing Director Vinod K. Dasari, said.
The EBITDA for the quarter under review was 11% of revenue against 13.1%, Mr. Dasari added.