Tight rein on costs, better market conditions and higher sales have contributed to commercial vehicle manufacturer Ashok Leyland Ltd reporting a growth in revenue and profits from ordinary activities during the fourth quarter of the current year.
For the fourth quarter ended March 31, 2015, net profit from ordinary activities after finance costs but before exceptional items was ₹296 crore on a total income of ₹4,505.70 crore against a net loss of ₹ 16.34 crore on an income of ₹ 3076.77 crore in the comparable quarter in the previous year.
In the fourth quarter of 2013-14, an exceptional income of ₹ 376 crore generated from sale of non-core assets had enabled Ashok Leyland to report a net profit.
The company has announced a dividend of ₹ 0.45 (45 per cent) a share of ₹ 1 for 2014-15. Addressing media persons at a press conference, Vinod K Dasari, Managing Director, said the total commercial vehicle sales during the quarter was 31 per cent higher at 34,159 units (26,043 units).
The business environment for the commercial vehicle sector continues to be tough.
The total industry volume for medium and heavy commercial vehicles was 230,000 units in 2014-15.
Though 16 per cent higher than in the previous year it is still low as compared with a high of 345,000 unit sales in 2011-12, he said.
On the BSE, the company’s shares closed at ₹ 72 against the previous close of ₹ 74.15.