May 28 (Reuters) – India’s Ashok Leyland reported its highest ever quarterly profit on Thursday, helped by strong demand for commercial vehicles.
• The Hinduja Group flagship reported standalone profit of 14.05 billion rupees ($146.8 million) in the three months ended March 31, up 13% from 12.46 billion rupees a year ago.
• Revenue from operations jumped about 19% to a record 141.6 billion rupees in the fourth quarter
• Auto sector demand, including for commercial vehicles, continued stayed strong on momentum from last year’s tax cuts
• Analysts, however, warned of margin pressures due to increased input costs amid the ongoing U.S.-Iran war.
• Ashok Leyland’s input costs soared 29%, driving up expenses by 19%
• “Our CV and export volumes were at an all-time high… the company delivered significant growth in power solutions, aftermarket and electric mobility businesses,” Chairman Dheeraj Hinduja said.
• Earlier this month, rival Tata Motors flagged near-term cost pressures due to the ongoing war even as it reported a near 70% jump in fourth-quarter profit.
($1 = 95.6863 Indian rupees)
(Reporting by Devika Nair in Bengaluru; Editing by Joyjeet Das)
