Lanka Ashok Leyland PlcCSELK: ASHO.N0000

Interim Financial Statements for the Quarter Ended 30.06.2024

Aug 14, 2024 at 1:32 PM UTC · Issued by Lanka Ashok Leyland PLC

INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED

30TH JUNE 2024

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024

STATEMENT OF FINANCIAL POSITION

31-Mar-24	As at	30-Jun-24		30-Jun-23
Rs.		Rs.		Rs.
Audited	ASSETS
	Non Current Assets
1,051,332,875	Property, Plant & Equipment	1,052,532,638	697,345,860
16,771,752	Right-of-Use Asset	14,741,257	32,763,699
644,325	Intangible Assets	575,506	851,726
131,904	Financial Investments	168,398	10,410,745
41,795,691	Rental Receivable from Trade Debtors	58,838,137	159,613,887
231,069,976	Deferred Tax Asset	241,817,580	323,936,088
1,341,746,523	Total Non Current Assets	1,368,673,516		1,224,922,005
	Current Assets
3,752,742,105	Inventories	3,543,906,227	2,819,260,854
619,357,222	Trade and Other Receivables	486,209,865	446,100,636
374,071,721	Rental Receivable from Trade Debtors	255,393,661	535,929,694
55,924,997	Deposits and Prepayments	98,057,612	66,736,406
1,355,114,264	Short Term Investments	552,821,072	37,300,000
85,999,793	Cash & Cash Equivalents	43,971,625	51,753,235
6,243,210,102	Total Current Assets	4,980,360,062		3,957,080,825
	Total Assets
7,584,956,625	6,349,033,578		5,182,002,830
	EQUITY & LIABILITIES

	Equity
49,375,150	Stated Capital	49,375,150	49,375,150
887,347,500	General Reserve	887,347,500	887,347,500
3,652,674,229	Retained Earnings	3,750,518,758	2,892,031,710
4,589,396,879	Equity Attributable to Owners of the Company	4,687,241,408		3,828,754,360
	Non Current Liabilities
57,723,545	Defined Benefit Obligation	58,063,675	102,869,923
11,112,605	Lease Liability	11,683,014	32,471,221
68,836,150	Total Non Current Liabilities	69,746,689		135,341,144
	Current Liabilities
989,740,655	Trade & Other Payables	1,092,669,883	744,071,426
1,655,721,179	Amounts due to Related Party	277,534,215	365,547,406
196,925,645	Current Tax Liabilities	174,565,229	14,088,391
9,773,122	Provision for Warranty	4,957,938	2,547,590
23,523,537	Lease Liability	23,523,536	30,355,200
51,039,458	Bank Overdraft	18,794,680	61,297,313
2,926,723,596	Total Current Liabilities	1,592,045,481		1,217,907,326
	Total Liabilities
2,995,559,746	1,661,792,170		1,353,248,470

7,584,956,625	Total Equity & Liabilities	6,349,033,578	5,182,002,830

1,267.49	Net Assets per Share	1,294.52	1,057.42

The above figures are provisional and subject to audit.

The same Accounting Policies and methods of computation are followed in this Interim Financial Statements as compared with the most recent audited Financial Statements.

G R Jayalath	U Gautam
Assistant General Manager - Finance	Chief Executive Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements. Approved and signed for and on behalf of the Board of Directors of Lanka Ashok Leyland PLC;

K C L De Silva	R D Balasubramaniam
Chairman	Director
Colombo
14th August 2024

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the	For the Quarter Ended 30 th June	2024/25	2023/24
Year Ended		Quarter 01		Quarter 01
31-Mar-24
	Rs.		Rs.
Rs.

Audited
	Revenue
4,229,076,849	New Vehicle Sales	636,101,441	352,363,910	81%
44,486,891	Diesel Generator Set Sales	6,720,000	14,329,500	-53%
290,180,441	Vehicle Repair Income	81,289,705	61,384,845	32%
373,592,210	Spare Parts Sales	28,139,949	42,654,002	-34%
467,051,383	Vehicle Hiring Income	181,612,008		75,736,836	140%
5,404,387,774	Total Revenue	933,863,103	546,469,093	71%
(3,589,971,737)	Cost of Sales	(674,934,773)		(402,319,943)	68%
1,814,416,037	Gross Profit	258,928,330	144,149,150	80%
194,551,854	Other Income	25,167,128		63,507,682	-60%
2,008,967,891		284,095,458	207,656,832
	Less :
29,813,836	Selling and Distribution Expenses	7,892,454	6,482,891	22%
668,179,894	Administrative Expenses	157,471,182	124,700,927	26%
(28,073,853)	Impairment (Reversal) / Charge on Trade Receivables	(15,063,049)	24,623,092	-161%
144,792,205	Other Operating Expenses	37,513,439		36,099,665	4%
1,194,255,809	Profit before Interest and Tax	96,281,432	15,750,257	511%
69,262,053	Finance Income	36,068,055	7,137,879	405%
(10,365,364)	Finance Cost	(2,958,501)	(3,467,481)	-15%
58,896,689	Net Finance Income	33,109,554		3,670,398	802%
1,253,152,498	Profit before Tax	129,390,986	19,420,655	566%
(395,365,601)	Tax Expense	(31,336,457)		(4,791,562)	554%
857,786,897	Profit for the Period	98,054,529	14,629,093	570%
	Other Comprehensive Income
	Items that will Never be Reclassified to Profit and Loss
(93,831,402)	Remeasurement of Employee Benefits - Actuarial Loss	(300,000)	(300,000)	0%
28,149,421	Deferred Tax Gain on Defined Benefit Plan	90,000	90,000	0%
(65,681,981)		(210,000)		(210,000)
	Total Other Comprehensive Income, net of Tax				0%
(65,681,981)	(210,000)		(210,000)
	Total Comprehensive Income for the period				579%
792,104,916	97,844,529		14,419,093

236.90	Basic and Diluted Earnings per Share	27.08	4.04

Figures in brackets indicate deductions. The above annual figures are audited

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024

STATEMENT OF CHANGES IN EQUITY

	Stated	General	Retained	Total
	Capital	Reserve	Earnings	Equity
	Rs.	Rs.	Rs.	Rs.
Balance as at 01st April 2023	49,375,150	887,347,500	2,877,612,617	3,814,335,267
Total Comprehencive Income
Profit for the Period	-	-	14,629,093	14,629,093
Other Comprehensive Income, net of Tax	-	-	(210,000)	(210,000)
Total Comprehencive Income	-	-	14,419,093	14,419,093
Transactions with owners of the Company
Contribution / Distribution
Unclaimed Dividend Reversed	-	-	-	-
Dividends	-	-	-	-
Total Transactions with Owners of the Company	-	-	-	-
Balance as at 30th June 2023
49,375,150	887,347,500	2,892,031,710	3,828,754,360
Balance as at 01st April 2024
49,375,150	887,347,500	3,652,674,229	4,589,396,879
Total Comprehencive Income
Profit for the Period	-	-	98,054,529	98,054,529
Other Comprehensive Income, net of Tax	-	-	(210,000)	(210,000)
Total Comprehencive Income	-	-	97,844,529	97,844,529
Transactions with Owners of the Company
Contribution / Distribution
Unclaimed Dividend Reversed	-	-	-	-
Dividends	-	-	-	-
Total Transactions with Owners of the Company	-	-	-	-
Balance as at 30th June 2024
49,375,150	887,347,500	3,750,518,758	4,687,241,408
Figures in brackets indicate deductions.

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024 STATEMENT OF CASH FLOWS

For the

Year Ended

31-Mar-24

Rs.

Audited

1,253,152,498

141,871,045

9,393,514

276,031

26,251,758

(28,073,853)

(127,013,905)

10,365,364

(60,870,758)

(144,590,886)

(4,638,736)

1,452,592

9,178,575

(12,142)

(166,411,401)

1,086,741,097

(1,421,875,000)

(259,197,423)

618,439,973

257,925,482

1,322,418,179

517,711,211

1,604,452,308

(3,134,509)

(18,183,715)

(147,107,165)

(106,612,878)

(275,038,267)

1,329,414,041

198,471,759

10,125,000

(80,395,047)

128,201,712

(23,514,550)

(18,104,215)

(41,618,765)

1,415,996,988

(25,922,389)

1,390,074,599

1,441,114,057

(51,039,458)

1,390,074,599

For the Quarter Ended 30 th June

Cash flows from Operating Activities

Profit before Tax

Adjustment For :

Depreciation of Property, Plant and Equipment Amortization of Intangible Assets Depreciation of Right-of-Use Assets Provision for Employee Benefits

Impairment Provision (Reversal) / Charge of Trade & Other Receivable Charge / (Reversal) of Provision for Inventory

Finance Costs

Interest Income Lease Interest Income

Loss / (Gain) on Sale of Property, Plant and Equipment Charge / (Reversal) of Provision for Free Service Charge / (Reversal) of Warranty Provision

Fair Value Gain on Equity Investments

Operating Profit / (Loss) before Working Capital Changes Working Capital Changes in

Inventories

Trade and Other Receivables

Amounts due from Related Party

Trade and Other Payables

Amounts due to Related Party

Cash Generated / (Used in) from Operations

Interest Paid

Employee Benefit paid

Investment in Plan Asset

Payments / Set off of Income Taxes

Net Cash Generated / (Used in) from Operating Activities

Cash flows from Investing Activities

Interest Received

Proceeds from Sale of Property, Plant and Equipment Acquisition of Property, Plant & Equipment

Net Cash Flows Generated from Investing Activities

Cash Flows from Financing Activities

Payment of Lease Liability

Dividend Paid

Net Cash Flows Used in Financing Activities

Net Increase / (Decrease) in Cash & Cash Equivalents Net Cash & Cash Equivalents at the Beginning of the period Net Cash & Cash Equivalents at the End of the period

Analysis of Cash & Cash Equivalents at the end of the period

Cash & Cash Equivalents

Bank Overdraft

2024	2023
Rs.		Rs.
129,390,986	19,420,655
45,745,834	27,139,271
68,819	68,631
2,030,490	3,257,416
4,500,000	3,000,000
(15,063,049)	24,623,092
23,604,484	12,033,868
1,776,378	3,467,481
(36,031,561)	(1,662,079)
(18,170,754)	(46,478,521)
143,364	(1,772,377)
56,685	(374,567)
(4,815,184)	1,953,043
(36,494)	(6,232)
3,809,012		25,249,026
133,199,998	44,669,681
185,231,394	(235,995,686)
5,875,628	(40,576,180)
201,837,777	218,465,280
102,491,189	13,785,212
(1,378,186,964)	32,244,406
(882,750,976)		(12,076,968)
(749,550,978)	32,592,713
(387,905)	(558,071)
-	(10,348,932)
-	-
(64,354,479)	(19,801,626)
(64,742,384)		(30,708,629)
(814,293,362)	1,884,084
49,742,444	49,279,067
2,500,000	5,125,000
(49,207,599)	(1,751,162)
3,034,845	52,652,905
(818,065)	(858,678)
-	-
(818,065)		(858,678)
(812,076,582)	53,678,311
1,390,074,599	(25,922,389)
577,998,017		27,755,922

596,792,697	89,053,235
(18,794,680)	(61,297,313)
577,998,017		27,755,922

Figures in brackets indicate deductions.

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024

NOTES TO THE INTERIM FINANCIAL STATEMENTS

Corporate Information
Lanka Ashok Leyland PLC ("the Company") is a Public Limited Liability Company incorporated in Sri Lanka under the provision of Companies Act, No. 17 of 1982 and re-registered under the New Companies Act, No.07 of 2007. The registered office of the Company is located at Panagoda, Homagama.
Basis of Preperation
The interim condensed Financial Statements have been prepared in accordance with Sri Lanka Accounting Standard - LKAS 34 "Interim Financial Reporting" and provide the information as required in terms of Rule 7.4 of the Colombo Stock Exchange.
Accounting Policies
There are no significant changes in the accounting policies and methods of computation since the publication of Financial Statements in the Annual Report for the year 2023/24.
Contingent Liabilities
There were no material Contingent Liabilities, which require adjustments or disclosures to the Financial Statements as at 30th June 2024.
Events After Reporting Date
No circumstances have arisen since the reporting date, which would require adjustments or disclosure in the interim Financial Statements.
Comparative Information
Comparative figures have been re-stated /re-classified where necessary, to conform the current period presentation.
Investor Information
Market Value of Shares
The market value of an ordinary share of Lanka Ashok Leyland PLC has been as follows;

		Quarter Ended 30.06.2024	Quarter Ended 30.06.2023	Year Ended 31.03.2024	Year Ended 31.03.2023
		Market Price	Trade Date	Market Price	Trade Date	Market Price	Trade Date	Market Price			Trade Date
	Highest	850.00	28-May-24	799.00	14-Jun-23	820.00	7-Mar-24	815.00			26-May-22
	Lowest	700.00	22-Apr-24	576.00	22-May-23	576.00	22-May-23	566.00			5-Jul-22
	Last Traded	773.00	28-Jun-24	750.00	28-Jun-23	690.00	28-Mar-24	755.00			31-Mar-23
	Market Capitalization					As at 30th June
								2024			2023
	Market Capitalization (Rs.)					2,798,911,639			2,607,006,960
	Public Shareholding

	No. of Share Holders					759			724
	Shareholding						30.38%			30.38%
	Float Adjusted Market Capitalization (Rs.)				850,309,356			792,008,714

	Lanka Ashok Leyland PLC complies with the minimum public holding requiremnent under the Option 05 of Listing Rule 7.13.1.
8. Ratios
	Net Assets value per Share (Rs.)				1,294.52			1,057.42
	Earnings per Share (Rs.)					27.08			4.04

Net Assets value per Share and Earnings per share are based on 3,620,843 shares in issue as at 30th June 2024, which represent the Stated Capital of the Company.

9. Dividend

After satisfying the Solvency Test in accordance with Section 57 of the Companies Act No. 07 of 2007, the Directors recommend the payment of first and final dividend of Rs. 15/- per share (150%) amounting to Rs. 54,312,645/- for the year ended 31st March 2024 (2022/23- Rs. 5/- per share (50%) amounting to Rs. 18,104,215/-), which will be declared at the Annual General Meeting to be held on 24th September 2024.

10 Directors' and Chief Executive Officer's Shareholding

None of the Directors or Chief Executive Officer held shares of the Company during the periods concerned.

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024

NOTES TO THE INTERIM FINANCIAL STATEMENTS

As at 30 th June	2024	2023
	Rs.	Rs.

11. Receivables and Related Party Transactions Rental Receivable from Trade Debtors

Rental Receivables - Related Parties	259,326,573	1,020,494,908
Rental Receivables - Others	169,295,454	28,468,010
Less - Deferred Interest Income	(21,385,620)		(115,505,466)
Unearned Rental Income	407,236,407	933,457,452
Less - Provision for Impairment Loss	(93,004,609)	(237,913,871)
Balance as at the end of the year	314,231,798		695,543,581

Rental Receivable - Non Current	58,838,137	159,613,887
Rental Receivable - Current	255,393,661	535,929,694
	314,231,798		695,543,581
Trade and Other Receivables

Trade Receivables - Related Parties	461,929,431	411,483,530
Trade Receivables - Others	174,718,703	107,662,941
Other Receivables	45,096,077		57,196,232
	681,744,211	576,342,703
Less - Provision for Impairment Loss	(195,534,346)	(130,242,067)
	486,209,865		446,100,636
11.1 Total Related Party Receivables

Rental Receivables - Related Parties	259,326,573	1,020,494,908
Trade Receivables - Related Parties	461,929,431	411,483,530
	721,256,004		1,431,978,438

11.1.1 Outstanding balances with Government of Sri Lanka & its related entities and Ashok Leyland Limited - India

Sri Lanka Transport Board	416,673,926	1,108,478,934
Other Government Related Entities	25,309,862	105,794,788
Government Financial Institutions	63,848,000	4,500,000
Ashok Leyland Limited - India	215,424,216	213,204,716
	721,256,004		1,431,978,438

Above gross receivable amounts are recorded under Trade Receivables and Rental Receivable from Trade Debtors.

11.2 Transactions with Related Entities of Government of Sri Lanka

For the Period Ended 30 th June		2024	2023
		Rs.	Rs.
Name of Related Party	Nature of Transaction
Government Related Entities	Sale of Vehicles, Spares Parts and Gen Sets and	289,511,240	165,686,186
	Services Rendered
Government Financial Institutions	Finance Provided to Lanka Ashok Leyland	110,468,800	4,500,000
	PLC's Customers
Sri Lanka Customs	Import Duty and Taxes	129,166,659	31,177,210
11.3 Transactions and Outstanding Balance with Ashok Leyland - India
Nature of Transaction
Purchase of Goods and Other Transactions	96,003,762	411,604,625
Amounts Payable to Ashok Leyland Limited - India	277,534,215	365,547,406
Amounts Receivable from Ashok Leyland Limited - India	215,424,216	213,204,716

11.4 Non Recurrent Related Party Transactions

There were no non-recurrent related party transactions for the period ended 30th June 2024 which requires immediate market disclosure.

LANKA ASHOK LEYLAND PLC

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2024

NOTES TO THE INTERIM FINANCIAL STATEMENTS

12. Shareholders Information

There were 761 registered shareholders as at 30th June 2024 distributed as follows;

	CATEGORY			NO. OF SHAREHOLDERS	NO. OF SHARES	SHARE HOLDING %
		30th June 2024	30th June 2023	30th June 2024	30th June 2023	30th June 2024	30th June 2023

	1 - 1,000			742	706	44,046	41,942	1.21	1.15
	1,001 - 5,000			13	14	27,119	29,223	0.75	0.81
	5,001 - 10,000			-	-	-	-	-	-
	10,001 - 50,000			1	1	31,250	31,250	0.86	0.86
	50,001 - 100,000			-	-	-	-	-	-
	100,001 - 500,000			2	2	429,291	429,291	11.86	11.86
	500,001 - 1,000,000			1	1	568,305	568,305	15.70	15.70
	Over 1,000,000			2	2	2,520,832	2,520,832	69.62	69.62

	TOTAL			761	726	3,620,843	3,620,843	100.00	100.00
13. List of 20 Major Shareholders

	MAJOR SHAREHOLDERS				NO. OF SHARES HELD	SHARE HOLDING %
				30th June 2024	30th June 2023	30th June 2024	30th June 2023

	Lanka Leyland (Pvt) Limited				1,512,500	1,512,500	41.77	41.77
	Ashok Leyland Limited				1,008,332	1,008,332	27.85	27.85
	N Thirimanne				568,305	568,305	15.70	15.70
	Perpetual Equities (Pvt) Limited			228,356	228,356	6.31	6.31
	Rahul Capital (Pvt) Limited				200,935	200,935	5.55	5.55
	Sri Lanka Central Transport Board			31,250	31,250	0.86	0.86
	D B D D Danthanarayana				5,000	4,800	0.14	0.13
	U I Suriyabandara				4,950	4,695	0.14	0.13
	R P T Adams				2,700	2,700	0.07	0.07
	L N J Perera				2,600	2,600	0.07	0.07
	Bansei Securities Capital (Pvt) Limited / M A U Gnanathilaka	2,230	2,230	0.06	0.06
	F M Asaf Khan				1,514	1,514	0.04	0.04
	Assetline Leasing Co. Ltd / S M Dharmakeerthi Samarkoon	1,500	1,957	0.04	0.05
	B Periyasamy				1,250	1,250	0.03	0.03
	L A P Perera				1,200	1,200	0.03	0.03
	P L Perera				1,100	1,100	0.03	0.03
	N R Fonseka				1,068	1,068	0.03	0.03
	N Eeswararajah / S Sivarasa				1,005	1,105	0.03	0.03
	R V D Piyathilake / R V D C G Rajapakse		1,002	2,004	0.03	0.06
	M H F Rushana				853	320	0.02	0.01
	R A Y T Perera				-	1,000	-	0.03
						.

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