Land sale steers Ashok Leyland to profit
Chennai: Sale of land and non-core assets has contributed to commercial vehicle manufacturer Ashok Leyland’s net profit doubling in the fourth quarter of 2013-14 compared with the corresponding quarter in the previous year.
The company has sold a portion of its land in Ennore and the premium Boat Club area in Chennai as part of its programme to bring down debt, said Vinod K Dasari, Managing Director, Ashok Leyland.
For the quarter ended March 31, 2014, the company reported a net profit of Rs 363.39 crore (Rs 150.03 crore) on a total income of Rs 3,076.77 crore (Rs 3,728.46 crore). Exceptional items accounted for Rs 376.09 crore (Rs 134.36 crore). In 2013-14, the net profit was down to Rs 29.38 crore (Rs 433.70 crore) on a total income of Rs 9,943.42 crore (Rs 12,481.20 crore).
Addressing media persons, Dasari said Ashok Leyland has restructured itself in a tough market environment to emerge a more efficient organisation equipped to fully exploit the anticipated revival of the commercial vehicle market in the coming years.
The company has significantly brought down its fixed costs, overheads, working capital and manpower costs.
Working capital is down 69 per cent to about Rs 244 crore compared with that in 2010-11 at about Rs 1,122 crore; manpower costs are down 7 per cent to Rs 997 crore in the current year compared with Rs 1,073 crore in the previous year; and overheads are down 33 per cent to Rs 128 crore.
The various initiatives including sale of non-core assets have contributed to the company paring its debt of Rs 6,200 crore by about Rs 1,470 crore.