Hinduja flagship firm Ashok Leyland on Tuesday posted 22.4% decline in its net profit to Rs. 66.9 crore for the quarter ended June 30 from Rs. 86.3 crore during the year-ago period on higher marketing expenses and power costs.
The firm’s revenue grew 20% at 3007.3 crore as vehicle sales went up by 42% at 27,487 units, mainly on account of the new introduction of light truck ‘Dost’.
The company’s total expense went up by 21% at R2855.9 crore as other expense that includes sales overheads went up by 50% at Rs. 307 crore.
“Our profits have taken a hit because of the robust brand building and marketing initiatives including the signing of Mahendra Singh Dhoni as our brand ambassador. We were also hit by spiralling power costs,” said Vinod K Dasari, MD, Ashok Leyland.