Chennai, Oct 20 (IANS) Commercial vehicle manufacturer Ashok Leyland closed the second quarter of the current fiscal with a 89 percent increase in net profit and 72 percent growth in revenue, and is planning global expansion through organic and inorganic modes.
For the second quarter ended Sep 30 this fiscal, Ashok Leyland logged a net profit of Rs.167.06 crore and a revenue of Rs.2,713.95 crore as against Rs.88.61 crore and Rs.1,577.28 crore earned during the corresponding period previous year.
‘With the economy continuing to be strong, industrial productivity remaining steady and freight generating sectors showing robust growth, everything points towards the market remaining bullish going forward,’ Managing Director R. Seshasayee said.
According to him, the growth in the present quarter will be trifle slower due to change in emission norms.
Profit from operations before other income, financial expenses and exceptional items at Rs.242.20 crore was higher by 110 percent compared to Rs.115.07 crore.
Financial expenses were also higher at Rs.39.49 crore
(Rs.17.00 crores) reflecting the impact of borrowings made during the last 12 months.
The company Wednesday appointed Dheeraj G. Hinduja, a third-generation member of the Hinduja family, as its chairman. He was co-chairman for the past three years and would take over the reins from R.J. Shahaney.
‘I have very ambitious expansion plans for Ashok Leyland and right at the top of my priority list is to fast-track the company’s global thrust through both organic and inorganic modes,’ Hinduja said.
‘Ashok Leyland is crucial for the realisation of the Group’s goal to becoming a major force in the global automotive space and I am delighted to be taking over when the Company is poised at a very exciting point in its development,’ he added.