Friday 12 October 2018

Sri Lanka's Ashok Leyland unit net down 72-pct as truck sales fall

ECONOMYNEXT - Profits at listed Lanka Ashok Leyland Plc, which distributes India's Ashok Leyland trucks in Sri Lanka fell 72 percent from a year earlier to 24.4 million rupees in the September 2018 quarter on falling vehicle sales, interim results showed.

The company reported earnings of 24.4 rupees a share in the quarter. For the six months to September 2019, the company reported earnings per share of 21.35 rupees as earnings fell 65 percent from a year earlier to 77.3 million rupees.

The stock last traded at 818.10 rupees a share.

Revenues fell 42 percent from a year earlier to 2.3 billion rupees and cost of sales fell 44 percent to 2.0 billion rupees and gross profit fell 19 percent to 247.7 million rupees, in the quarter, interim accounts filed with the stock exchange showed.

The company says it has a 60 percent market share in Sri Lanka's commercial vehicle market for busses and trucks. It also imports spare parts and diesel generators.

In the September 2019 quarter, vehicle sales fell 42 percent from a year ago to 2.3 billion rupees while diesel generator sales declined 42 percent to 3.8 million rupees.

Spare parts sales had increased 13 percent to 34.5 million rupees while income from vehicle hires surged 169 percent to 20.2 million rupees.

Administration expenses grew 4 percent to 121 million rupees and selling and distribution costs fell 79 percent to 7.2 million rupees.

Net finance cost in the September quarter was 64 million rupees grew sharply from an income 1.5 million rupees a year earlier.

The company's short term borrowings had fallen 54 percent to 1.3 billion rupees as it inventory.

The firm had earned earlier that a Euro 4 standard (super diesel) for engines of imported vehicle that started in July 2018 would hurt operating costs of truck owners.

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