Net profit and domestic sales increases in first quarter of 2015

Ashok Leyland, flagship of the Hinduja Group, reported sales revenues of Rs.13562 Crores as against Rs.9943 Crores in the previous fiscal. EBITDA stood at Rs.1027 Crores during FY'14-15, against Rs.117 Crores in the previous fiscal.

Profit Before Tax (PBT) and exceptional items stood at Rs.341.26 Crores during FY'14-15, against a loss of Rs.596.88 Crores in the previous fiscal. Net profit was at Rs.334.80 Crores, against a net profit of Rs.29.38 Crores in the previous fiscal.

During the year, the Company generated surplus cash of around Rs.2000 Crores, aided by positive accruals, qualified institutional placement (QIP), sale of non-core assets, and reduction in working capital, all of which resulted reduction in debt.

Speaking on the occasion, Vinod K. Dasari, Managing Director, said, "It's been a very gratifying year. All our efforts towards the transformation of the Company in terms of pruning costs, rationalizing overheads, reducing working capital, and at the same time investing smartly in new products and network are paying off. The industry has turned the corner and so have we. I am confident that coming years will see us build on this momentum.

Our market share in the M&HCV segment has improved, with domestic sales of 66,442 vehicles. This was possible primarily due to an enhanced product range with market leaders like 3718, Boss, Captain and JanBus, as well as continued network expansion across the country, despite the downturn.

Further, a renewed focus on customer and network profitability, new service products like AMC, insurance and extended warranty, and our vast service network, provided confidence to our customers about our capability of offering nationwide service.

This combined with a completely revamped IT enabled sales process, helped us reach more customers, and understand their requirements better and faster.

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