Ashok Leyland net rises 63% to Rs 38 crore

Ashok Leyland has reported a 63 per cent jump in net profit for the third quarter at Rs 38 crore as compared with Rs 23.28 crore in the corresponding period of the previous year.

Sales turnover grew 50 per cent to Rs 987.41 crore (Rs 659.70 crore). Sales volume shot up to 12,489 vehicles (7,776 vehicles) and a 65 per cent compression in financial expenses.

R Seshasayee, managing director, Ashok Leyland, noted that in the face of steep input price increase, margins were under pressure but added that "the pricing action we took in December last year will benefit the current quarter and mitigate the drop in margin.

Seshasayee confirmed that the company was going ahead with the proposal to raise long-term funds to the extent of $100 million in the international market "which will enable us to quickly enhance our production capacities in line with the demand growth we clearly foresee".

Provision for current taxation and deffered taxation was higher at Rs 12.37 crore and Rs 6.04 crore respectively. The company's sales turnover for the nine month period between April - December 2003, was Rs 2634.06 crore registering a 30 per cent increase. Net profit for the same period has nearly doubled to Rs 106.25 crore, from Rs 53.87 crore.