Chennai, July 22 (IANS) Better sales, a profitable product mix, reduced material, finance and overhead costs, higher other income, profit from currency and interest rate swap were major contributors to Ashok Leyland's growth in first-quarter profit, said a senior official.
The company has firmed up plans to set up an assembly unit in Kenya involving an outlay of less than $5 million, Chief Financial Officer Gopal Mahadevan told reporters here on Friday.
The commercial vehicles-maker closed the first quarter with a revenue of Rs 4,258.84 crore and a net profit of Rs 290.78 crore.
For the corresponding period of the previous year, Ashok Leyland had logged a revenue of Rs 3,883.13 crore and a net profit of Rs 144.50 crore.
"A combination of factors like growth in sales volume, profitable product mix, reduction in costs, higher other income and profit from currency and interest rate swap contributed to the net profit growth," Mahadevan said.
However, he said, even taking out the other income and the profit from currency and interest rate swap the net profit has seen good growth during the first quarter.
Asked about hike in prices of vehicles when the overall costs -- material, finance -- have come down in a sizeable manner, Mahadevan said the company has to have a profitable growth so that customers get the real value.
He said the company had paid back some high cost loans. The company's debt equity ratio was at 0.3:1.
He said exports during the first quarter have declined, but will pick up in the coming months.
The company has firmed up plans to set up a 3,000 units per annum truck and bus assembly plant in Kenya involving an outlay of less than $5 million, Mahadevan said.
Ashok Leyland will have a strategic partner in Bangladesh who would set up a truck assembly unit there, he said.
The capacity of Ras Al Khaimah plant in the United Arab Emirates will also be increased, he added.
