MUMBAI: Commercial vehicles major Ashok Leyland has reported a near 9 percent dip in net income to Rs 526 crore for the June quarter, primarily due to a high one-time income in the year-ago period when it had booked Rs 576 crore.
The Hinduja group company on Thursday said that revenue from operations rose 5 percent to Rs 8,599 crore for the reporting quarter.
However later in the day, in another statement it said the 8.7 percent in net income for the quarter was due to high base in the corresponding period last fiscal when it had a gain of Rs 172 crore in deferred tax liability, after the company moved to the new tax structure wherein it had to restate the deferred tax liability from 35 percent to 25 percent.
“If we take this one-time gain away, net income in the reporting quarter will be Rs 526 crore, resulting in a 30 percent growth in the reporting quarter,” the company said.
The Chennai-based automaker, which is the second-largest medium and heavy commercial vehicle manufacturer in the country after Tata Motors, said given the price hike, its margins increased to 10.6 percent from 10 percent in the year-ago period.
Ashok Leyland chairman Dheeraj Hinduja said the industry continues to maintain the growth momentum, contrary to the expectations at the start of this year. Industry wide volume in Q1 was at comparable levels of the previous peak of Q1FY19.
"Through our electric vehicle subsidiary, Switch Mobility, we are geared to participate in the growing EV market with a clear roadmap. The launch of IeV3 this month, the second e-LCV launch by Switch, will further strengthen our position in this market," he said.
"While we continue to expand our market penetration with efficient products and network expansion, we shall remain acutely focused on achieving mid-teen operating profit in the medium term. This is important for us as we continue to focus on investing in technologies of the future," said Shenu Agarwal, the chief executive of the company said.
Ashok Leyland shares closed flat at Rs 232.45 on the BSE whose index closed in the red for the fifth consecutive day.