Chennai, July 24, 2012: Ashok Leyland, the flagship of the Hinduja Group, has registered a 19.7% increase in turnover atRs. 3,007 crores for the quarter ended June 30, 2012 as against Rs. 2,513 crores of the corresponding quarter of the previous fiscal.

Sale of vehicles for the quarter stood at 27,487 numbers (19,277 nos.) with domestic volume at 17,335 nos. (16,738 nos.)reflecting a rise of 3.6% over the previous corresponding quarter. International operations continued its good showing with2,904 nos. (2,539 nos.), up 14.4%.The overall improvement in the sales numbers were largely a result of the excellent performance of ‘Dost’, the Company’s Light Commercial Vehicle and the gradual improvement in the southern markets.

The Company’s Profit from Operations before Other Income, Finance Costs and Depreciation stood at Rs. 241 crores, marginally lowerby 1.6% compared to the previous year (Rs. 245 crores) owing to higher overheads.

Employee Costs were higher by 7.3% at Rs. 268 crores (Rs. 250 crores). Depreciation was higher by 5.4% at Rs. 89 crores (Rs. 85 crores). Other Expenses rose toRs. 310 crores (Rs. 207 crores) due to higher sales overheads.

The Company’s Profit from Ordinary Activities before Financial Costs and Exceptional Item was at Rs.164 crores (Rs. 167 crores). The Company’s Profit from Ordinary Activities after Financial Costs and Exceptional Item was at Rs. 81 crores (Rs. 111 crores).

Net profit was at Rs. 67 crores as against Rs. 86crores for the corresponding quarter in the previous year.

“We ended 2011-12 strongly and we have been able to carry forward that momentum into the first quarter of this fiscal in sheer volume terms,” said Mr. Vinod K. Dasari, Managing Director, Ashok Leyland. “Even while the Total Industry Volume in India dipped by 12%, we were able to increase our market share by 3.8%. Our LCV, ‘Dost’, did very well, achieving 21% market share in the first 9 months of sales. However, our profits have taken a hit largely because of the robust brand building and marketing initiatives that we kicked off during the quarter including the signing on of Mahendra Singh Dhoni as our Brand Ambassador. In addition, we were also hit by spiraling power costs.”

Speaking about the quarter ahead, he said, “Although the market outlook is tepid, we are cautiously optimistic of the coming months. We will focus on introducing a slew of new products that the market is waiting for, keep building our network and continue our brand building efforts to maintain and improve our market share.”

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