Hinduja flagship firm Ashok Leyland has reported over three-fold jump in standalone net profit at Rs 370.1 crore in the first quarter ended June 30, 2018 on robust sales.

According to a BSE filing, the company had posted a standalone net profit of Rs 111.23 crore in the same quarter last fiscal. Revenue from operations during the period under review stood at Rs 6,250.12 crore. It was at Rs 4,534.46 crore in the same quarter last fiscal.

The two figures are not comparable as after GST implementation on July 1, 2017, revenue from operation is shown as net of GST.

Ashok Leyland Managing Director Vinod K Dasari said, during the quarter, the total industry volume registered 84 per cent growth primarily driven by surge in infrastructure spend leading to higher sales.

“There was also the impact of base effect. We continued our focus on profitable growth and tight control on working capital, in a market which operated on heavy discounting and credit push,” he added.

Despite pressure on realisation and increase in raw material prices, the company continued to post growth with profitability, Dasari said.

“We have grown significantly in intermediate commercial vehicles (ICVs). Light commercial vehicles (LCV) and bus business have also posted very good growth. Exports have also grown by 24 per cent,” he said.

During the quarter, Ashok Leyland saw its medium and heavy commercial vehicle (MHCV) volumes rise by 54 per cent to 30,647 units, while LCVs increased by 33 per cent to 11,481 units.

On the outlook, Dasari said, “We will continue to pursue our strategy of de-risking the company from cyclicality even as we pursue superior returns.”

Ashok Leyland shares ended the session higher by 2.43 per cent at Rs 128.80 on the BSE.

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