The Hindu : ALL net up, pays 50 p.c.

Online edition of India's National Newspaper
Saturday, May 03, 2003

Business

Business

ALL net up, pays 50 p.c.

By Our Staff Reporter

CHENNAI MAY 2. Ashok Leyland has achieved an increase of 30 per cent in net profit at Rs. 120.20 crores in 2002-03 against Rs. 92.30 crores in 2001-02.

The company has raised the equity dividend to 50 per cent from 45 per cent. The turnover has crossed the Rs. 3,000 crore mark to Rs. 3,074 crores from Rs. 2,630.40 crores.

Total sales of vehicles during the year grew by 22.8 per cent, to 36,444 as compared to 29,673 in 2001-02. Of which exports accounted for 2,550 vehicles against 2,170 vehicles, a growth of 17.5 per cent.

Addressing a press conference here today, R. Seshasayee, Managing Director, Ashok Layland, said the profit before tax, after extraordinary item, at Rs. 170.12 crores (Rs. 132.20 crores) was higher by 28.7 per cent.

The provision for taxation (including deferred taxation) is Rs. 49.89 crores (Rs. 39.95 crores).

The company had, during the year, adjusted miscellaneous expenditure (to the extent not written off) and diminution in value of plant and machinery (including capital work-in-progress) and investments to the securities premium account following necessary approval of the shareholders at the company's EGM held on January 18 and subsequent confirmation by the Madras High Court. The total amount so adjusted out of securities premium account was Rs. 159.91 crores.

Mr. Seshasayee said the company's prospects in the export market had been boosted by contracts worth $46 million it had received, for the supply of 3,322 trucks to Iraq, under the UN-approved oil for food programme.

Meanwhile, there are repeat orders from Seychelles and Afghanistan — two markets the company entered the last financial year. Mr. Seshasayee also said to support the thrust area of R&D, the company would step-up R&D spend two-fold in the current year.

While the development of 3 compliant engines was on course, the company would, through a phased manufacturing programme, actualise the `J' series engine for which technology was acquired from Hino Motors, Japan recently.

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