Financial Daily from THE HINDU group of publications
Wednesday, Oct 27, 2004
Ashok Leyland net dips 20 pc
Chennai , Oct. 26
ASHOK Leyland has reported a lower net profit for the quarter ended September, compared with the corresponding quarter of last year.
The company's net profit was Rs 43.06 crore against Rs 53.46 crore previously - a fall of nearly 20 per cent.
"During the quarter we were hampered by disruption in operations at one of our Hosur units, which has since resumed normal operations," said Mr R. Seshasayee, Managing Director, in a release.
However, sales during September - the month the company suffered the strike - actually increased to 4,619 vehicles against 4,604 vehicles earlier.
Turnover for the quarter under review increased to Rs 1,047.04 crore compared to Rs 962.18 crore previously.
The bottomline has been impacted by a rise in all elements of costs. Total expenditure as a percentage of sales increased to 80.21 per cent (75.24 per cent).
Consumption of raw material increased to 64.6 per cent of sales (62 per cent), reflecting an increase in steel prices. The charge on account of VRS payments was also higher at Rs 2.37 crore (Rs 1.76 crore).
However, the company had a net interest income of Rs 91 lakh compared with an interest cost of Rs 9.5 crore in the second quarter of last year.
For the first half of the current year, the company has reported a net profit of Rs 75 crore (Rs 68.27 crore).
Again, the turnover for the period was higher at Rs 1,990.66 crore against Rs 1,646.65 crore previously.
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