Ashok Leyland

Ashok Leyland turned around in Q3FY15 on a YoY basis. From a net loss of Rs.167 crore in previous Q3, in current Q3, it posted a net profit of Rs.32 crore. This was on the back of very good operational performance with its net sales rising by a big 73% (YoY) at Rs.3291 crore. This jump in topline was on account of improvement in profitability of fleet owners, optimistic business environment and pre-buying ahead of excise duty hike. During the quarter, medium and heavy commercial vehicles recorded a 70% growth while light commercial vehicles (LCVs) saw a 8% jump. Total volumes this led by MHCVs was up 38%.

The jump in bottomline was helped, apart from the robust topline, a 70% increase in other operating income, 15% drop in interest outgo, 27% rise in other income. EBITDA for the quarter came in at Rs.238 crore v/s loss of Rs.97 crore in previous Q3. The good news here – its 9MFY15 net profit of Rs.105 crore is already over 3.6 times its entire FY14 net profit of Rs.29 crore. Call it the base effect or anything else, clearly FY15 will end on a bumper note!