Ashok Leyland’s standalone profit after tax rose 12.7% to Rs 869.02 crore in the September quarter, offering investors a read on demand in India’s commercial-vehicle market as an audit caveat clouded group results.
The company’s Nov. 14 filing reported profit of Rs 771.06 crore for the quarter a year earlier. Standalone revenue from operations increased 39.4% to Rs 13,364.28 crore from Rs 9,588.18 crore. The company pointed to customer demand, the prices it realized and the mix of products sold as factors behind the revenue increase.
Commercial vehicle volumes reached 64,677 units, up 32% from a year earlier. Ashok Leyland described the total as a quarterly record. Medium and heavy commercial vehicle volumes rose 44% to 37,958 units, while light commercial vehicle volumes gained 21% to 21,371.
Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to Rs 1,350 crore from Rs 1,162 crore. The EBITDA margin, which measures EBITDA against revenue, was 10.1%, compared with 12.1% in the year-earlier quarter.
The board declared an interim dividend of Rs 1 per equity share, which has a face value of Rs 1. The filing confirmed Nov. 20 as the record date, previously announced in a Nov. 10 letter. Payment is due on or before Dec. 13.
For the consolidated results, the company reported revenue from operations of Rs 17,029.87 crore and profit attributable to owners of Rs 842.92 crore. Price Waterhouse & Co Chartered Accountants LLP said it lacked sufficient evidence to express a conclusion on those results.
The auditor cited loan-balance differences at subsidiary Hinduja Leyland Finance Limited (HLFL). The filing said HLFL is reconciling differences across its underlying systems while an independent expert reviews related systems and processes. The possible effect on the results could not be assessed. Management judged the issue unlikely to materially affect HLFL’s financial condition or its ability to pay debt.
Ashok Leyland’s next scheduled event is an investor call Monday, Nov. 16, at 12:30 a.m. ET (05:30 UTC; 11 a.m. IST) to discuss its second-quarter performance and business updates.
