India's Ashok Leyland beats quarterly profit view on demand for high-margin heavy vehicles
May 22 (Reuters) - Indian truck and bus maker Ashok Leyland (ASOK.NS), opens new tab reported a higher-than-expected rise in fourth-quarter profit on Friday thanks to healthy demand for its margin-boosting, heavier load-carrying models.
The Hinduja Group-owned automaker reported a profit of 12.46 billion rupees ($146 million) in the quarter ended March 31, a 38.4% rise over the previous year.
Analysts, on average, expected the company to report a profit of 11.09 billion rupees, according to data compiled by LSEG.
Ashok Leyland's overall sales grew 5%, with those of its larger models climbing 7%, it said in its quarterly update in April.
The company benefited from lower discounting compared to a year before, analysts said, while higher contribution to sales from its more profitable heavy commercial vehicles (CV) helped.
The segment, which includes vehicles such as the "BOSS" truck, forms two-thirds of Ashok Leyland's overall sales.
The low-margin small CV segment's contribution to Ashok Leyland's overall sales declined.
Industry-wide sales of commercial vehicles grew 1.5% in the January-March period, with the medium and heavy models' 3.9% sales jump driving growth.
Rival Eicher (EICH.NS), opens new tab reported profit at its CV joint venture with Volvo doubled due to high demand, while Tata Motors (TAMO.NS), opens new tab reported a profit decline as demand for its small CVs stayed low.
Ashok Leyland's shares closed 0.3% higher on the day, little changed after the results.
($1 = 85.1710 Indian rupees)
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