Lanka Ashok Leyland (LAL) recorded an impressive Rs 8.2b revenue driven by demand for new vehicles.
This 18% increase in revenue over 2014 led to a 33% increase in gross profit which stood at Rs 919.9m, Lanka Ashok Leyland, Chief Executive Officer Umesh Gautam said in the company’s annual report for 2014-15.
Lanka Ashok Leyland was able to post a net profit after tax of Rs 332 m, a 102% increase from 2014’s net profit of Rs164.6mn.
The gross profit margin fell marginally to 9% from 10% last year as a result of an increased buildup of inventory in the last quarter of the year.Operational expenses remained flat at Rs 303.8m while an impairment charge of Rs 64.9m was recognized during the year resulting in a profit before interest and tax of Rs 701.3mn, an 8% increase year on year.
One of the key improvements this year has been the 74% reduction in finance expense which stood at Rs 87mn from Rs 332.7mn a year earlier.
While low interest rates prevailed during the financial year, this significant improvement is a culmination of the management’s efforts over the last few years to deleverage our balance sheet which has been a success by any measure.
As of 31st March 2015, our inventory has grown 25% to Rs 3.4 b while our borrowing has increased by a mere 4% to Rs 2.2 bn demonstrating the purposeful decoupling that management has pursued.
www.dailynews.lk
This 18% increase in revenue over 2014 led to a 33% increase in gross profit which stood at Rs 919.9m, Lanka Ashok Leyland, Chief Executive Officer Umesh Gautam said in the company’s annual report for 2014-15.
Lanka Ashok Leyland was able to post a net profit after tax of Rs 332 m, a 102% increase from 2014’s net profit of Rs164.6mn.
The gross profit margin fell marginally to 9% from 10% last year as a result of an increased buildup of inventory in the last quarter of the year.Operational expenses remained flat at Rs 303.8m while an impairment charge of Rs 64.9m was recognized during the year resulting in a profit before interest and tax of Rs 701.3mn, an 8% increase year on year.
One of the key improvements this year has been the 74% reduction in finance expense which stood at Rs 87mn from Rs 332.7mn a year earlier.
While low interest rates prevailed during the financial year, this significant improvement is a culmination of the management’s efforts over the last few years to deleverage our balance sheet which has been a success by any measure.
As of 31st March 2015, our inventory has grown 25% to Rs 3.4 b while our borrowing has increased by a mere 4% to Rs 2.2 bn demonstrating the purposeful decoupling that management has pursued.
www.dailynews.lk
No comments:
Post a Comment