Lanka Ashok Leyland recorded a top line of Rs 7.4 bn, a 27% increase over Rs 5.8 bn recorded for the same period last year.
The third quarter recorded a turnover of Rs 2.7bn with robust demand from the private sector driving sales volume up 40% year on year.
Profitability was squeezed as import costs rose with the weakening rupee and some additional provisioning resulted in a profit before tax of Rs 242.5mn, a 51% decrease on 2014/15. The gross profit margin fell from 11% to 8% while the net profit margin fell to 2% from 6% for the same period last year, the depreciation and lack of currency stability is a key factor to us.
“We continue to have a sizeable outstanding amount due from the Government sector which has put pressure on our working capital, resulting increased borrowings which rose 22% to Rs 2.0 bn. Finance costs, net of exchange rate losses and gains remained flat year on year at Rs 37.8 mn.
Lanka Ashok Leyland CEO Umesh Gautam said they are thrilled with the demand response from the private sector and the robust sales performance is indicative of that.
“We are buoyed by our efforts to increase and improve our sales in the light commercial vehicle segment. Sales have jumped 104% year on year but we still have bigger inroads to make in this segment. We have built up our inventory levels since 1Q2014 and this will act as a hedge against the USD volatility if the volatility continues and we cut down our imports till it becomes stable again.
The third quarter recorded a turnover of Rs 2.7bn with robust demand from the private sector driving sales volume up 40% year on year.
Profitability was squeezed as import costs rose with the weakening rupee and some additional provisioning resulted in a profit before tax of Rs 242.5mn, a 51% decrease on 2014/15. The gross profit margin fell from 11% to 8% while the net profit margin fell to 2% from 6% for the same period last year, the depreciation and lack of currency stability is a key factor to us.
“We continue to have a sizeable outstanding amount due from the Government sector which has put pressure on our working capital, resulting increased borrowings which rose 22% to Rs 2.0 bn. Finance costs, net of exchange rate losses and gains remained flat year on year at Rs 37.8 mn.
Lanka Ashok Leyland CEO Umesh Gautam said they are thrilled with the demand response from the private sector and the robust sales performance is indicative of that.
“We are buoyed by our efforts to increase and improve our sales in the light commercial vehicle segment. Sales have jumped 104% year on year but we still have bigger inroads to make in this segment. We have built up our inventory levels since 1Q2014 and this will act as a hedge against the USD volatility if the volatility continues and we cut down our imports till it becomes stable again.
www.dailynews.lk
No comments:
Post a Comment