!Ashok Leyland shares rise 2% after Q1 profit climbs to Rs 668 crore; revenue jumps 10%

Shares of commercial vehicle manufacturer

Leyland rose 2.15% to Rs 175.35 on Monday after the company reported a modest year-on-year increase in consolidated net profit for the quarter ended June. The Chennai-based automaker posted a consolidated net profit of Rs 668 crore in Q1, up 2% from Rs 658 crore recorded in the corresponding quarter of the previous year. Consolidated revenue from operations increased 10% year-on-year to Rs 10,750 crore during the quarter. On a standalone basis, net profit reached a record Rs 609 crore, reflecting continued strength in the company’s core commercial vehicle business. However, profitability remained under pressure as EBITDA margin contracted to 10.1% from 11.1% a year earlier. The decline was primarily attributed to higher material costs during the quarter. Despite the margin compression, the improvement in revenue and profit, along with the record standalone earnings, supported investor sentiment and lifted the stock during Monday’s trading session. Investment in securities market are subject to market risks. Read all the related documents carefully before investing,