Demand for Lanka Ashok Leyland products drove turnover to Rs 7.2bn for the first six months of 2017, a 49% increase over last year’s revenue.
On the back of an impressive few quarters, turnover for the 2nd quarter of 2017 stood at Rs 4bn, a 41% increase over the same quarter in 2016. Gross profit for the six months grew 33% to Rs 563.8mn while marginally higher import costs squeezed the gross profit margin to7.5%, a decline of 90 basis points.
The impressive sales performance comes on the heels of Lanka Ashok Leyland’s push to market its updated product line which is technologically superior to its competitors featuring radial tyres and ABS systems and for the first time in Sri Lanka, will set an environmental standard for its commercial vehicles in line with the international European Emission Standard. All Lanka Ashok Leyland vehicles will now be sold as EURO III compliance which limits the amount of Carbon monoxide and other harmful emissions from the vehicle
Operating costs rose 13% to Rs 191.0mn for the cumulative period leading to an operating profit of Rs 385.6mn, a 48% increase year on year. Commenting on the results, the CEO of Lanka Ashok Leyland Gautam said, “we felt the timing and market conditions were best suited to introduce EURO III commercial vehicles to the market.
The EURO III standard restricts the amount of toxic emissions from automobiles and many countries across the world require all vehicles to adhere to a European Emission standard.
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