Demand revival: Ashok Leyland plants to operate more days in July than previous months

The company has sold 5,851 vehicles in June in the domestic market as against 2,132 vehicles in the same month last year, registering an increase of 174%. 

By:July 7, 2021 5:59 AM
Image used for representational purposes

 

Hinduja flagship commercial vehicle major Ashok Leyland (ALL) on Tuesday said its manufacturing plants across the country would be operational for more number of days in July, ranging from six to 25, as compared to May and June. The Chennai-based company, in a stock exchange disclosure, revealed that the overall market demand in July was better than the previous month. Reeling under pandemic-induced lockdown coupled with the slowdown in demand, ALL had said its plants would be operational in June only for five to 10 days. The company had kept its plants closed in May for about seven to 15 days due to Covid. ALL has seven manufacturing plants across the country.

The company has sold 5,851 vehicles in June in the domestic market as against 2,132 vehicles in the same month last year, registering an increase of 174%. ALL had reported a net profit of Rs 241 crore for the fourth quarter of FY21 as against a net loss Rs 57 crore in the corresponding quarter last year. The company reported a revenue of Rs 7,000 crore in Q4 FY21 as against Rs 3,838 crore in the same period last year, registering 82% year-on-year growth. The ebidta was at 7.6% as against 4.8% last year. Releasing the earnings performance, MD & CEO Vipin Sondhi had said, “We have seen recovery in Q4 FY21 and the overall performance has been better.”

The company said it expected the commercial vehicles market to revive by July, and it would ramp up the production as well as increase the number of shifts depending on the evolving situation. ALL sees good opportunities to increase the exports, while it expects LCV, defence and vehicle parts business complementing the expansion of the overall business.

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