New Delhi: Ashok Leyland, a subdivision of Hinduja Automobile Ltd, reported its standalone net profits up by 747 per cent year-on-year (YoY) rising to Rs 578.42 on Friday for the June quarter of the Financial Year 2023, against Rs 68.05 crore in the corresponding period last year.
Ashok Leyland results
The integrated automobile company reported a hike of 13.5 per cent to Rs 8,151.96 in its revenue from operations. During the same period last year, it stood at Rs 7,189.2 crore.
The firm’s other income for the quarter hiked to Rs 37.3 crore in tune with the Rs 33.5 crore throughout the quarter a year back.
Meanwhile, the company’s total income went up by 13.4 per cent YoY to Rs 8,189.3 crore for the first quarter of FY23 as against Rs 7,222.8 crore in the year-ago period.
The Chennai headquartered company declared a 17 per cent year-on-year (YoY) drop in its net profits in the March quarter of FY2022-23 to Rs 751.41 crore. However, the company’s revenue from operations grew 33 per cent YoY topping Rs 11,626 crore.
Ashok Leyland’s other income stood at Rs 51 crore twice last year’s other income of Rs 26 crore. The company’s deferred tax credit for the June quarter increased to Rs 168 crore against Rs 1.9 crore in the same period last year.
On the last day of the trading session, the company’s shares were trading at 3.60 per cent at Rs 179.25 on BSE as the results were made public.
Currently, Ashok Leyland declared getting an order amounting to Rs 80 crore from the Indian Armed Forces. The order consists of the contracts for producing the Field Artillery Tractor (FAT 4×4) and the Gun Towing Vehicle (FTV 6×6) which are present in the initial positive indigenization list proclaimed by the Government of India.
Analyst remarks-
Himanshu Singh, a research analyst of Prabhudas Lilladher Pvt Ltd said that the overall, strong set of numbers from both revenue and margins left the street’s estimates.
He further added that as per the company, demand should get better from the second quarter of Financial Year 24 onwards as the first quarter’s performance was impacted by the pre-buying in the fourth quarter of the Financial year 23 ahead of the transition to BS VI Onboard Diagnostics (OBD) 2 norms.
