Ashok Leyland receded by 0.4% to Rs 99 in mid-afternoon trades after reporting a fall in Q4 net profit.

The scrip of the second largest commercial vehicles maker in the country had, in contrast, gained as much as 4% to Rs 103.45 earlier. But no sooner the company's Q4 results were declared, the scrip moved swiftly into the slipstream.

Ashok Leyland has been moving in a band of Rs 92-105 all of the last few months.

For Q4 ended 31 March 2003, ALL reported a 4.7% fall in net profit to Rs 66.34 crore compared to a net profit of Rs 69.62 crore in the corresponding period of the previous year. That was much below market expectations. As per a capitalmarket.com poll, ALL was expected to post a 9%-17.5% growth in net profit to between Rs 76 crore and Rs 82 crore.

Total income has gone up 20.7% to Rs 939.18 crore from Rs 777.53 crore (Rs 7.77 billion) in MQ-02. Analysts had predicted a 19%-31.6% growth in sales to between Rs 913 crore (Rs 9.13 billion) and Rs 1,011 crore (Rs 10.11 billion) for Q4 ended 31 March 2003 as against Rs 768 crore (Rs 7.68 billion) in MQ 2002.

For FY 2002-03, ALL posted a 30.3% increase in net profit to Rs 120.21 crore (Rs 1.2 billion) on a 19% jump in total income to Rs 2,713.95 crore (Rs 27.13 billion). The board declared a dividend of 50% or Rs 5 per share for FY 2003.

ALL is seen benefiting from the government's thrust on roadway projects as these will enhance sales of commercial vehicles.

For FY 2002-03, ALL recorded impressive growth in volumes. Its sales went up 22.8% to 36,445 vehicles from 29,673 units a year ago. It recorded a 23.2% rise in domestic vehicle sales to 33,895 units, while exports jumped by 17.5% to 2,550 units. The surge in demand for medium and heavy commercial vehicles, due to the shift in demand towards multi-axle vehicles, has boosted the sector in recent years. ALL is also a leading supplier of buses to state governments.

The Hinduja group company has framed a strong export strategy and is exploring new markets in Argentina, Afghanistan and Seychelles. To start with, the company plans to export 75 vehicles in three batches to Afghanistan.

eanwhile, ALL intends to cut 1,000 jobs during the next financial year. It may be recalled that the Chennai-based automobile major had reduced its manpower strength from 15,300 six to seven years ago to 11,900, currently. ALL also plans to improve productivity through better processes and standardisation.

BSE code: 500477