Ashok Leyland Ltd (ALL), the Rs 2,600-crore flagship of the Hinduja Group, has reported a net loss of Rs 9.4 crore on a turnover of Rs 583 crore for the first quarter ended June 30, 2001, as against a net loss of Rs 19.68 crore on a turnover of Rs 444.73 crore for the corresponding period of the previous year. This represents a 31 per cent growth in turnover and 52 per cent fall in net loss.
Though it achieved a higher turnover due to increased sales of vehicles in the medium and heavy commercial vehicles (M&HCV) segment and higher CKD sales to the Army, the company has still not come out of negative profits.
The company, in the first quarter, posted a 4.9 per cent growth in the domestic market, raising the company's share to 38.3 per cent (34.5 per cent).
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R Seshasayee, managing director, ALL, said: "Three factors have contributed to the improved financial results. First, through market share gains we have maintained our sales volume. Secondly, while maintaining sales volume, our turnover improved, with better product mix and higher off-take of CKD packs for army vehicles. And, lastly, we have tightened our working capital requirements and improved our gross profits".
Other income for the first quarter stood at Rs 1.06 crore (Rs 5.42 crore), interest at Rs 20.2 crore (Rs 23.9 crore) and depreciation at Rs 24.9 crore (Rs 20.77 crore).
Gross operating margins during the year was Rs 34.6 crore as against Rs 19.6 crore in the corresponding quarter of previous fiscal, an increase of 76.62 per cent.
The company's AGM held today, approved a dividend of 40 per cent for 2000-2001.