Lanka Ashok Leyland to expand manufacturing operations
View(s):Lanka Ashok Leyland is set to expand local manufacturing operations following the completion of the landmark 185,000 square feet facility at its Panagoda factory. It will facilitate the increase in assembly and manufacture and promote the development of local ancillary suppliers, Umesh Gautam, CEO of the company said.
The improved factory area features vast greenery and will allow installation of solar panelling as the company moves towards 100 per cent self-sufficient power generation and reduce the burden on the national grid, he added.
With the expansion of local manufacture and assembly and the robust demand for Lanka Ashok Leyland products, the company remains cautiously optimistic going into next year as it looks towards the interest rate cycle trending downwards again, a media release of the company quoted Mr. Gautam as saying.
Lanka Ashok Leyland’s revenue for the first half of 2016/17 touched Rs. 5 billion, a 5 per cent improvement over the previous year, the media release revealed adding that a drop in sales of light commercial vehicles was compensated by robust demand for heavy vehicles.
Increased income from workshop activity along with reduced inventory provisions has led to a 20 per cent increase in gross profit of Rs. 413.7 million, against Rs. 345.2 million for the previous year.
Operating costs rose 10 per cent to Rs. 214.4 million driven by increased depreciation costs while income from other sources fell 33 per cent to Rs. 15.8 million resulting in earnings before interest and tax (EBIT) of Rs. 199.2 million.
Finance expenses grew 58 per cent to Rs. 49.4 million owing to rising interest rates over the period resulting in a Profit before Tax of Rs. 149.8 million, a 27 per cent increase YoY.