Lanka Ashok Leyland profits double as new vehicle sales spike

The profits of Lanka Ashok Leyland PLC virtually doubled during the most recent quarter ended in December (3Q18) as the company made phenomenal growth in sales of new vehicles during the three months. 

Kick-starting the December earnings season, the Sri Lanka unit of India’s Ashok Leyland Limited reported earnings of Rs.125.1 million or Rs.34.54 a share from Rs.68.9 million or Rs.19.03 a share in the corresponding period a year ago.  Lanka Ashok Leyland, the key supplier to Sri Lanka’s public transport system for over 3 decades recorded revenues of Rs.4.31 billion during the quarter under review, a 57 percent jump from the earlier period. 

Out of the total income, Rs.4.23 billion or 98 percent came from new vehicle sales, the interim results filed with the Colombo Stock Exchange showed. 

The company also generated positive growths in all its other sources of income – sale of diesel generator sets, vehicle repairs, spare parts sales and local agency commissions. 

Meanwhile, during the first 9- months, the company reported an after tax profit of Rs.347.1 million or Rs.95.85 a share from Rs.165.77 million profit reported during the same period a year earlier. 

The total revenue for the period was up by 52 percent to Rs.11.6 billion. 

 
Since Lanka Ashok Leyland PLC was incorporated in 1982 as a joint venture between Ashok Leyland Limited India and Lanka Leyland Private Limited – a state owned entity – the company has been a key supplier of public transport buses. 

Today, Ashok Leyland Limited India holds 27.85 percent stake in the company while Lanka Leyland Private Limited holds 41.77 percent stake. 

Perpetual Equities Private Limited, a unit of the now embattled Perpetual Treasuries group, remains the fourth largest shareholder of Lanka Ashok Leyland with 6.31 percent stake.