Ashok Leyland announced its first quarter numbers for the financial year 2010. The company’s Q1 standalone net sales were down 51.6% at Rs 912 crore versus Rs 1,887 crore. Its standalone net profit was down 84.7% at Rs 7.7 crore versus Rs 50.6 crore, on year-on-year (YoY) basis.
Its operating profit margin declined to 1.5% from 6.4%. Loss before tax stood at Rs 31.33 crore versus an earnings before interest, taxes, depreciation, and amortization (EBITDA) of Rs 77 crore.
K Sridharan Chief Financial Officer, Ashok Leyland, said the market can expect new launches in the second half of 2009. “New launches and dealer tie-ups will drive growth going forward. Also, the bus segment will boost growth." He expects 10% volumes growth in FY10, while targeting over 60,000 vehicle sales.
Sridharan expects the company’s operating profit margin (OPM) to go back to 10-11% levels as he sees signs of sales pick up in the south on account of revival in the textile industry. "
The company, he said, is looking at generating Rs 400-500 crore from internal accruals. “We have not yet decided on whether to raise money via equity or debt.”
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