Commercial vehicle major Ashok Leyland has decided to write down Rs 157 crore in its accounts as diminution in the value of investments made in its earthmoving equipment joint venture with John Deere.
Speaking to reporters in Chennai on Thursday, Gopal Mahadevan, chief financial officer, said the write-down would not have an impact on the bottomline in a major way as the company could offset it with around R151.82 crore profit on sale of long term investments in IndusInd Bank.
Ashok Leyland had earlier decided to write down around R224 crore invested in its joint venture with Japanese auto major Nissan. Ashok Leyland had also wrote down around R224 crore invested in its joint venture with Japanese automobile maker Nissan Motor.
Ashok Leyland John Deere Construction Equipment Company, formed to make backhoe loaders, was not performing well. Ashok Leyland holds 50% in the firm. The company has reported a loss of R29.55 crore in 2014-15.
Asked whether the writing down of investments by Ashok Leyland in the JV will continue, Mahadevan said it cannot be predicted, as the company has investments in IndusInd Bank subsidiaries and other outfits. He said he is bullish about the future and the company would continue to report double-digit volume growth in the second half, and expects the volumes for the company to be better than industry, which is likely to be around 20%.