Lanka Ashok Leyland first nine months results up midst tough 3Q

Monday, 5 March 2012 00:00 -     - {{hitsCtrl.values.hits}}

Lanka Ashok Leyland Plc has achieved a pre-tax profit of Rs. 1.35 billion in the first nine months of 2012 Financial Year, up by 22% over the corresponding period of last year.

Net profit after tax for the nine months ended 31 December 2011 was Rs. 978 million, up by 38% from a year earlier.

Total revenue saw a 29% increase to Rs. 10.6 billion whilst new vehicle sales grew by 32% to Rs. 10.2 billion.

In full 2010/11 financial year, new vehicle sales were Rs. 11 billion whilst total revenue was Rs. 11.56 billion whilst net profit after tax was Rs. 644.4 million.

Whilst first nine months reflect growth, Lanka Ashok has had a tough third quarter with new vehicle sales almost static at Rs. 3.5 billion, same as the third quarter of last year. Total revenue had declined marginally from Rs. 3.7 billion in FY11 third quarter to Rs. 3.6 billion a year later. Gross profit dipped from Rs. 532 million to Rs. 441.5 million whilst profit from operations declined from Rs. 499.5 million to Rs. 429.7 million. Pre-tax profit in 3Q of FY12 was Rs. 429 million, down from Rs. 495 million a year earlier. This was despite finance cost being lower at Rs. 0.5 million, as against Rs. 4.7 million in 3Q of FY11.

Net profit after tax had been only Rs. 309 million in 3Q of FY12 down from Rs. 321.6 million a year earlier. Earnings per share amounted to Rs. 85.34 down from Rs. 88.83 whilst for the first nine months it had increased to Rs. 270.16 from Rs. 195.49. Net assets value per share had improved from Rs. 329 from last year to Rs. 552 as at 31 December 2011.

Lanka Ashok’s share price had declined to Rs. 2,925 from Rs. 4,050 between the two quarters, whilst it is up in comparison to Rs. 2,650 as at 31 March 2011.