Lanka Ashok Leyland 1Q profit rise 77%

By Dinali Goonewardene

Lanka Ashok Leyland Plc’s Profit After Tax soared 77 % to Rs.278.9 million in the three months ending June 2011. New Vehicle Sales grew 69% over the same period last year to Rs.2.9 billion and Vehicle Repair Income grew 26% to Rs.19 million. However spare part sales fell 83% to Rs.15.9 million.

Chief Executive Officer, Lanka Ashok Leyland Umesh Gautam said the company’s outlook continues to be optimistic for the foreseeable future. “We continue to be a significant stakeholder in Sri Lanka’s economy and will continue to improve its transport infrastructure by way of our superior products and services, he said. Sri Lanka continues to be financially burdened by large operating losses and larger necessary capital expenditure, Gautam said in his annual review.

Cost of sales in the first quarter grew 62% over the same period last year to Rs.2.6 b contributing to an increase in Gross Profits which grew by 48 % to Rs.419 m while Other operating income rose 218% to Rs.30 m. Selling and distribution income declined 23% to Rs.6.6 m as administration expenses rose 54% to Rs.37 m contributing to a 77.6 % increase in Profit After Tax to Rs.278.9 m. Finance cost declined by 9% to Rs.12.2 m.  The company’s Earnings Per Share was Rs.77.05 while its Net Asset Value per share was Rs.390.

SLTB operated approximately 4441 buses a day in 2010. Buses owned by the private operators increased by 6.1% during the year to 19,805.

Last year the company reported that revenue had increased 238 % to Rs.11.5 billion while profits grew 622% to Rs.648 million.