Total income of the company increased to Rs 2,573.61 crore from Rs 2,307.9 crore in the same period last year. Operating margins for the quarter was up by 14 per cent to Rs 803 crore from Rs 702 crore.
The firm's financial expenses rose 832 per cent to Rs 497.40 crore from Rs 53.32 crore. R Seshasayee, managing director, Leyland, said that rise in financial expenses is mainly due to the company's on-going expansion programmes.
Ashok Leyland's profit after tax for the full financial year 2007-08 rose 6.4 per cent to Rs 469.31 crore from Rs 441.28 crore. Company's sales turnover is up at Rs 7,729 crore from Rs 7,168 crore. Other income rose to around Rs 73 crore from around Rs 70 crore.
Commenting on the company's performance Seshasayee said that there is a slowdown in the commercial vehicles market that dropped by 10 per cent to 57,364 units from 64,144. However, passenger commercial vehicles posted a growth of 51 per cent to 18,244 units.
from 12,007 units.
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Total vehicles sales including passenger, goods, defence and exports for the company increased around 0.26 per cent to 83,307 units from 83,094 units. Exports have increased by 21 per cent to 7,285 units from 6,025 units. Engine volumes grew by 37 per cent to 12,169 units from 8,904 units.
The Rs 3,000 crore expansion plan will be funded by raising Rs 950 crore through bank loans during 2008-09, while the rest will be from internal accruals. Seshasayee said that there was no immediate plan for raising additional equity.