Hinduja Group flagship Ashok Leyland registered a 31.8% rise in its Net Profit for the second quarter of the current fiscal, at Rs. 8,860.55 lakhs (Rs 6,724.37 lakhs). This is despite a 15.7% decline in sales revenue, at Rs. 157,768.46 lakhs (Rs.187,047.29 lakhs), mirroring a 16.9% drop in vehicles volume, from 17,207 nos. to 14,297 nos. Net profit for the corresponding quarter of previous year was boosted by Other Income of Rs. 2,379.26 lakhs, as against a lower other income of Rs. 555.96 lakhs in the current quarter.

The improved profitability has been achieved through tighter control on working capital and operating costs, aided by lower material costs.

Other expenses, at Rs. 13,620.64 lakhs (Rs. 17,396.73 lakhs), showed a reduction of 21.7%, reflective of the cost control measures and lower number of working days.

Financial expenses at Rs. 1,700.40 lakhs (Rs 2,457.53 lakhs) are lower by 30.8%, thanks to tighter control on working capital.

“With the economy expected to grow at around 6%, the overall growth prospects look favorable for industry. The commercial vehicle market too is in a robust turnaround phase. The firming up of freight rates is a positive sign,” commented Mr. R Seshasayee, Managing Director. “We anticipate significant volume pick up in the second half leading up to a double digit growth in the current fiscal,” he added.