Commercial vehicles major Ashok Leyland has reported a 51.9 per cent increase in its net profit at Rs 14.81 crore (Rs 148.1 million) in the first quarter ended June 30 as against Rs 9.75 crore (Rs 97.5 million) in the same period last year.

According to figures released by the company in Chennai on Tuesday, the sales turnover for the quarter at Rs 684.47 crore (Rs 6,844.7 million) was up by 5.3 per cent as compared to Rs 649.73 crore (Rs 6,497.3 million) for the corresponding quarter last fiscal.

Profit before tax was 39.9 per cent higher at Rs 21.74 crore (Rs 217.4 million) as against Rs 15.54 crore (Rs 155.4 million) in the first quarter of the previous fiscal.

The annual general meeting of the company held in Chennai on Tuesday approved a dividend of 50 per cent for the year 2002-03.

In a press release, R Seshasayee, managing director of the company, said the upward revision in GDP growth estimates and the shift in economic activity had improved the prospects for the commercial vehicle industry.

"There is already an upswing in the market demand," he added.