Corporate Results
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HCV/LCV/Tractors
Ashok Leyland net up marginally at Rs 54 cr
Our Bureau
Chennai
,
Jan. 31
ASHOK Leyland has reported a net profit of Rs 54.50 crore for the quarter ended December 31, against Rs 53.65 crore in the same period last year on account of a Rs 8-crore financial burden due to depreciation of the rupee and a sharp rise in interest charges.
Loss on account of foreign exchange fluctuation amounted to Rs 7.9 crore compared with a gain of Rs 18.61 crore previously.
Interest charges rose to Rs 7 crore from Rs 1.8 crore, because of an increase in working capital caused by an inventory build-up.
Turnover increased to Rs 1,202 crore in Q3 from Rs 987 crore in the same quarter last year. Gross profit amounted to Rs 116.09 crore against Rs 101.95 crore.
Analysts have pointed out that gross profit is almost flat because Ashok Leyland has a policy of taking the loss on account of exchange fluctuation under `other expenditure', rather than as an extraordinary item of expenditure, after gross profit.
As per accounting standard AS-11, companies are required to take to profit and loss account gains or losses on account of fluctuation in foreign exchange. Therefore, the net profit for the period is impacted by the exchange rate on the day the profit and loss account is drawn up.
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