Ashok Leyland, flagship of the Hinduja Group, reported a 12 per cent decline in profit at Rs 665 crore during the quarter ended March 31, 2019, as against Rs 741 crore, a year ago.
The revenue rose by 1 per cent to Rs 8,846 crore as against Rs 8,780 crore in the same period last year. Profit before exceptional items and tax was at Rs 818 crore and the volume of LCVs increased by 8% to 15,502 units.
The domestic MHCV industry volume in Q4 decreased by 4% for in 2018-19 to 112,469 units (according to SIAM). Ashok Leyland's volumes grew by 1% to 41,519 units in the domestic market. In the quarter ended March 31, 2019, the company's MHCV market share was up at 36.9% as against 35.1% last year.
Total MHCV volumes, including exports, increased by 9% to 142,858 units. The sales volume of LCVs increased by 25% to 54508 units.
The board has recommended a dividend of Rs 3.10 per share subject to approval by shareholders.
"We have been able to maintain our market share despite competitive pressures and be profitable in the face of rising costs of input materials and regulatory changes. Our LCV programme continues its winning streak. We are well on our way to successful introduction of BS 6 and together with a range of products planned across the spectrum in FY '21, I am confident of maintaining the current growth momentum. In the medium term, we believe this sector holds strong potential which is crucial to the growth of the economy,” said Dheeraj Hinduja, Chairman, Ashok Leyland Limited.
"We have grown our market share in both trucks and buses in the fourth quarter and will continue to focus on the twin engines of growth and profitability. We continue to be net cash positive at the year end with over Rs.700 crores of cash,” added Gopal Mahadevan, Chief Financial Officer, Ashok Leyland.