ASHOK LEYLAND LTD =RESULTS =Q1 FY 2012 (JUNE 2011) = PRESSURE ON COSTS HITS PROFITS = BONUS ISSUE FOR FY 2011

Ashok Leyland Limited

NSE Symbol     ASHOKLEY

ASHOK LEYLAND has reported mediocre results for Q1 FY 2012 ending June 2011.

Net Sales in Q1 FY 12 at Rs.2495.51 cr – is down by 34.82% from Q4 FY 2011; Up by 12.04% from Q3 FY11; Down by 8.05% from Q2 FY 11; and Up by 6.28% from Q1 FY 11. Thus sales Growth is moderate with reference to corresponding Qtr while heavily down compared to previous qtr.

Raw Materials cost in Q1 FY 12 is Rs.1960.63 cr – down by 24.28% from Q4 FY 11; Up by           14.13% from Q3; Down by  2.49% from Q1; and UP by 10.22% from Q1 FY 11, a more than proportionate increase compared to Q1 FY 12.

Total Expenditure at Rs.2335.55 Cr – is down by 31.22% from Q4 FY 11; Up by 9.86% from Q3; Down by 5.51% from Q2; and UP by 7.43% from Q1 FY 11. The variations indicate that sales follow a seasonal Pattern also.

Profit from Operations is Rs.159.97 cr – Down by  a huge 63.03% from Q4 FY 11; Up by 57.85% from Q3; Down by 33.96% from Q2; and Down by 8.03% from Q1 FY 11.

Profit before tax for q1 FY 12 is Rs.110.73 Cr – Down by 71.73% from Q4 FY 11; Up by 99.42% from Q3; Down by 46.64% from Q2; and Down by 24.69% from Q1 FY 11.

Net Profit  for Q1 FY 12 is Rs.86.25 Cr – Down by 71.08% from Q4 FY 11; Up by 98.89% from Q3; down by 48.37% from Q2; and Down also by 29.67% from Q1 FY 11.

Basic EPS  on a Face Value of Rs.1 is Rs.0.65 for Q1 FY 12; Rs.2.24 in Q3 FY 11; Rs.0.33 in Q3 FY 11; rs.1.26 in Q2 FY 11; and Rs.0.92 in Q1 FY 11.

CONFERENCE CALL DETAILS

Ashok Leyland, the flagship of the Hinduja Group, has registered a 6.3% increase in turnover to Rs. 2,495.5 crores (Rs. 2,348 crores) in the quarter ended June 30, 2011.

Sale of vehicles for the quarter stood at 19,277 numbers (21,400 nos.) with domestic volume at 16,738 nos. (19,460 nos.) and international operations contributing 2,539 nos. (1,940 nos.). The drop in domestic volume was primarily in the South, the Company’s stronghold for long, which also resulted in a loss of overall market share.

The Company’s EBIDTA at Rs. 244.6 crores is marginally better than in the previous year (Rs. 234.8 crores) despite Employee Costs being higher at Rs. 249.7 crores (Rs. 202.5 crores). Depreciation was higher by 37.7% at Rs. 84.7 crores (Rs. 61.5 crores). Financial Expenses rose to Rs. 53.3 crores (Rs. 31.6 crores) on the back of an increase in working capital which is now being brought under control.

The Company’s Profit before Financial Expenses and Exceptional Item was at Rs.164.1 crores (Rs. 178.7 crores). The Company’s Profit from Ordinary Activities before Tax was at Rs. 110.7 crores (Rs. 147.0 crores).

Net profit was at Rs. 86.3 crores as against Rs. 122.6 crores for the corresponding quarter in the previous year.

“After the robust growth of 2010-11, the first quarter of this fiscal has seen a significant moderation,” is how Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, put it. “The rise in cost of ownership due to spiraling input costs, the rise in fuel prices, hardening interest rates and a fall in freight availability all contributed to this moderation. While our domestic performance was subdued, the over 30% jump in our exports helped shore up our numbers,” he added.

Speaking about the quarter ahead, he said, “We are cautiously optimistic of the coming months because the fundamentals remain strong and the India growth story continues. We have the launch of DOST, the first light commercial vehicle from the Ashok Leyland-Nissan stable and the construction equipment products in association with John Deere which will make the coming quarter interesting,” he concluded.

ANNOUNCEMENTS TO NSE

19-07-2011          Ashok Leyland Limited standalone Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 249550.6 lacs for quarter ending on 30-JUN-2011 against Rs. 234797.81 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 8625.3 lacs for the quarter ending on 30-JUN-2011 against Rs. 12264.39 lacs for the quarter ending on 30-JUN-2010.          -

15-06-2011          Ashok Leyland Limited has resolved to issue Bonus Shares by way of capitalization of Securities Premium aggregating Rs. 13303.38 lakhs in the ratio of one equity share of Re. 1/- each for every one equity share of Re. 1/- subject to the approval of the shareholders at the ensuing Annual General Meeting and such statutory approvals as may be required. Bonus Shares issued and allotted shall rank pari passu in all respects with the existing shares except that these Bonus Shares shall not be eligible for dividend for the year ended March 31, 2011.    -

25-05-2011          Ashok Leyland Limited press release dated May 25, 2011, titled "Ashok Leyland bags order for 290 Double Deckers for Bangladesh."

19-05-2011          Ashok Leyland has recommended a dividend of Rs.2/- per share of the face value of Re.1/- each (200%).

19-05-2011          Ashok Leyland standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 1111770.9 lacs for year ending on 31-MAR-2011 against Rs. 724471.05 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 63129.93 lacs for the year ending on 31-MAR-2011 against Rs. 42367.48 lacs for the year ending on 31-MAR-2010.

18-01-2011          Ashok Leyland press release dated January 18, 2011, titled "Ashok Leyland bags fresh orders from VRL Logistics".

RESULTS TABLE

ASHOK LEYLAND	30-Jun-11	31-Mar-11	31-Dec-10	30-Sep-10	30-Jun-10
Net Sales	249550.6	382853.13	222724.51	271395.45	234797.81
Increase in SIT / WIP	-23767.23	10652.43	-14939.53	-9249.36	-11360.17
Raw Materials	196063.31	258939.4	171785.99	201072.21	177879.28
Traded Goods	7514.54	6437.89	6090.11	7868.15	6940.82
Employees Cost	24973.91	30181.01	24392.33	21148.77	20249.52
Depreciation	8465.88	7721.21	6469.08	6405.93	6146.88
Other Expenditure	20304.12	25655.33	18792.95	19929.75	17548.28
Total Expenditure	233554.53	339587.27	212590.93	247175.45	217404.61
Profit from Operations	15996.07	43265.86	10133.58	24220	17393.2
Other Income	411.77	411.71	167.33	481.41	472.98
Interest	5334.54	4507.75	4748.1	3948.5	3161.79
Profit before tax	11073.3	39169.82	5552.81	20752.91	14704.39
Tax expense	2448	9347	1216	4047	2440
Net Profit	8625.3	29822.82	4336.81	16705.91	12264.39
Dividend (%)	-	200	-	-	-
Face Value (In Rs	1	1	1	1	1
Paid Up Equity	13303.42	13303.42	13303.42	13303.42	13303.42
Basic EPS	0.65	2.24	0.33	1.26	0.92
Public Holding (%)	49.02	49.02	49.02	47.96	47.96

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