Ashok Leyland profits rise in FY15

Ashok Leyland has recorded sales revenues of Rs 13,562 crore as against Rs 9,943 crore in the previous financial year. EBITDA stood at Rs.1,027 crore during FY 2014-15, against Rs.117 crore in the previous fiscal. Profit Before Tax (PBT) and exceptional items stood at Rs.341.26 crore during FY 2014-15, 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 commercial vehicle major generated surplus cash of around Rs.2000 crore, 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. Said Vinod K. Dasari, MD, “Our efforts towards the transforming 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.” Ashok Leyland’s share in the M&HCV segment has shown improvement with domestic sales of 66,442 vehicles. This has been claimed to have resulted from an enhanced product range, which includes the 3718, Boss, Captain and JanBus. Expansion of network even during the slow down has been attributed as one of the reasons for the good performance. downturn. Also contributing to the good performance were factors like a renewed focus on customer and network profitability, annual maintenance contracts, insurance and extended warranty. The Board of Directors have recommended a dividend of 45 per cent.