Ashok Leyland Q1 profit dips 45 pct on poor sales

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Published: August 1, 2019 2:10:59 AM

The revenue during the quarter under review declined by 9% to Rs 5,684 crore as compared to Rs 6,263 crore in the corresponding quarter of last fiscal, the company said in a release here on Wednesday.

M&HCV sales during the quarter dropped by 13% to 26,719 units as against 30,647 units sold in the same quarter last fiscal.

Following a 13% drop in its value segment — M&HCV — in the quarter, truck major Ashok Leyland (ALL) has reported a 45.5% drop in its net profit for the period that ended June 30, 2019 to Rs 230 crore as compared to Rs 422 crore in the same quarter of last fiscal. The revenue during the quarter under review declined by 9% to Rs 5,684 crore as compared to Rs 6,263 crore in the corresponding quarter of last fiscal, the company said in a release here on Wednesday.

The board of directors, with the consent of all the directors present at the meeting, have approved to offer or invite subscriptions for bonds, secured/unsecured, redeemable non-convertible debentures, in one or more series tranches, aggregating upto Rs 600 crore.

M&HCV sales during the quarter dropped by 13% to 26,719 units as against 30,647 units sold in the same quarter last fiscal. The overall sales (including LCVs) during the quarter declined by 6% to 39,608 units as compared to 42,128 units sold in the corresponding quarter of last fiscal, according to company’s data. The Total Industry Volume during the quarter under review declined sharply by 17%. Ebitda for the quarter was at 9.4%. The company’s market share in the M&HCV segment for the quarter grew 4% to 34.1%.

Dheeraj G Hinduja, chairman, Ashok Leyland said, “While the industry has witnessed a decline in volume of 17%, Ashok Leyland’s market share has grown by 4%. Our Ebitda at 9.4% despite decline in revenues signifies efficient cost management in the company. We are well on course to introduce BS-VI vehicles and will be seeding vehicles shortly.”

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