Chennai, May 8 (IANS) Commercial vehicle manufacturer Ashok Leyland Thursday announced that the company posted a net profit of Rs.4.69 billion ($117.3 million) for 2007-08 as compared to Rs.4.41 billion the previous fiscal. The company has clocked a turnover of Rs.77.2 billion during the period against Rs.71.6 billion of 2006-07.

Last fiscal, Ashok Leyland sold 83,307 vehicles (passenger 18,244, goods 57,364, defence 414, exports 7,285) against 83,094 units (passenger 120,07, goods 64,144, defence 918, exports 6,025) sold during previous year.

Asked about the steep decline in sales of commercial vehicles, Ashok Leyland managing director R. Seshasayee said: “It’s not that we didn’t have orders. The reason for our higher slide in goods carrier segment last fiscal is due to supply side constraints. This is being addressed this year.”

The profits grew because of some aggressive value engineering, sourcing initiatives and higher productivity.

“Despite rising input costs, we improved our operating margins,” he added.

The company also said it sold 12,169 engines in last fiscal against 8,904 units in the previous year.

Seshasayee added the company has earmarked Rs.30 billion as capital expenditure (capex) for the next three years to increase the capacity to 100,000 units per annum.

Ashok Leyland will also extend its range of tractors and multi-axle vehicles.

The company’s board has recommended a dividend of Rs.1.50 per equity share for the fiscal 2008.

The board has appointed chief operating officer Vinod K. Dasari as whole-time director and re-appointed Seshasayee as managing director for three more years.