Hit by high raw material costs, Hinduja Group flagship company Ashok Leyland on Tuesday reported a 29.67% decline in net profit for the quarter ended June 30 to Rs 86.25 crore.
The company had posted a net profit of Rs 122.64 crore for the April-June quarter last fiscal.
Net sales during the first quarter of this fiscal stood at Rs 2,495.5 crore, as against Rs 2,347.97 crore in the year-ago period, up 6.28%, Ashok Leyland said in a filing to the Bombay Stock Exchange.
During the period under review, the company said its raw material costs and expenditure incurred on work-in-progress increased to Rs 1,960.63 crore from Rs 1,728.32 crore in the same quarter a year ago.
In the quarter ended June 30, 2011, the company modified the method for amortisation of value of certain leasehold land "for more appropriate presentation of working results and financial position".
"The impact of the said modification is a reduction in other expenditure by Rs 94.6 crore for the quarter," it said.
Ashok Leyland's scrip was trading at Rs 51.25 on the BSE in afternoon trade today, down 1.63%.