Ashok Leyland beats Q4 profit estimates on reduced costs
- Ashok Leyland's input and services costs dropped 7.3% and brought down total expenses by 6.5% to 99.14 billion rupees.
Indian truck maker Ashok Leyland beat fourth-quarter profit estimates on Friday as reduced costs outweighed beleaguered demand for its trucks and buses.
Standalone profit rose 19.8% to 9 billion rupees ($108.36 million) for the three months to March 31, surpassing analysts' estimates of 8.69 billion rupees, according to LSEG data.
Input costs came off a high base last year as manufacturers globally battled higher transportation and raw material costs amid conflicts and the lingering impact of the pandemic.
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Ashok Leyland's input and services costs dropped 7.3% and brought down total expenses by 6.5% to 99.14 billion rupees.
Meanwhile, commercial vehicle sales floundered on poor agricultural yield and higher discounts and were coming off a high base.
Ashok Leyland's total sales volume fell nearly 6% in the January-March period, as per its monthly sales data, driving a 3.1% fall in its revenue to 112.67 billion rupees.
Sales volume of commercial vehicles for market leaders Tata Motors and Eicher Motors, which makes trucks and buses under a joint venture with Volvo, had also fallen in the quarter.
The segment, however, is a smaller business for both. Tata Motors and Eicher's profit climbs were on the back of their respective premium vehicle sales - Jaguar Land Rover and Royal Enfield.
Ashok Leyland's shares rose as much as 3.3% to a record high after the results.
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