The negative growth in income and subsequent net loss during the quarter was due to a 18.5% drop in its sales to 18,453 units as against 22,661 units in the same quarter last fiscal.
For the nine months ended December 2013, revenue stood lower at Rs 6,867 crore (from Rs 8,753 crore) and net loss at Rs 334 crore as against profit of R284 crore). For the nine-month period, total sales were down by 21% to 63,294 units.
VRS compensation, which stood at R43.58 crore, also played some role in the loss.
The company said the continuing slowdown in the commercial vehicle business and a y-o-y drop of 32% in total industry volume in Q3 reflected in Ashok Leylands performance.
In line with its policy of ensuring fiscal prudence, Ashok Leyland is working to lower costs, reduce debt and divest non-core assets. There has been a significant reduction in operating costs and lowered working capital; including a VRS for about 500 executives.
The company is targeted to bring down its total debt by Rs 1,000 crore and towards this, it has started selling non-crore assets, including its tech arm Defiance in the US and other assets in India.
We look forward to the general optimism associated with Q4. Our latest offering, the Captain range of heavy trucks, brings an altogether different level of trucking experience to Indian roads and we are sure to reap its benefits. We hope orders under JNNURM will commence in Q4, Vinod K Dasari, managing director, Ashok Leyland, said.
Ashok Leyland on Tuesday also signed an MoU with Automotive Skill Development Council (ASDC), the first sector-skill council in the country.
Promoted jointly by the auto industry and department of heavy industry and National Skill Development Corporation, ASDC conducts skill development programmes for the automobile sector.
As its affiliate training partner, ASDC will endorse Ashok Leyland's course modules that are designed to benefit the
overall auto ecosystem through quality training and certification.