Ashok Leyland Q2 net plummets 93% to Rs38.9 cr
11 Nov 2019
Commercial vehicle major Ashok Leyland has reported a 92.6 per cent year-on-year fall in its fiscal second quarter net profit at Rs38.9 crore hit by a Rs64.8 crore one-time loss.
Ashok Leyland had posted a net profit of Rs527.7 crore in the year-ago period.
The company had reported a Rs19.3 crore hit in the corresponding period last fiscal as well. This was due to expenses on voluntary retirement scheme and provision for obligation relating to a subsidiary.
Ashok Leyland shares fall 7 per cent after it reported a 93 per cent profit decline in Q2.
Revenue from operations also fell 48.4 per cent to Rs3,929.5 crore, while volumes dropped 44 per cent in Q2 to 28,938 units. Medium and heavy commercial vehicle sales declined 56 per cent while sales of light commercial vehicles dropped 11 per cent.
"The industry has witnessed a 53 per cent decline in volumes. Volumes for Ashok Leyland also witnessed a significant drop in this quarter, despite this, we have been able to achieve earnings before interest, tax, depreciation, and amortisation (EBITDA) of 5.8 per cent," Ashok Leyland chairman Dheeraj G Hinduja said.
The stock fell as much as 7 percent to Rs71.20 per share on the BSE. At 9:31 am, the stock was trading 5 per cent lower at Rs72.80 compared to 0.06 per cent or 23 points rise in BSE Sensex at 40,347.
Barring the Utility Vehicle segment, all other segments of the auto sector has been registering decline in sales.
Even the festival season failed to bring any cheer to the automobile sector, as the wholesale numbers continued to fall in October on a year-on-year basis.
Combined sales of medium and heavy commercial vehicles in India declined to 15,334 units, as against 30,752 units in October 2018. This is a fall of more than 50 per cent.
Total commercial vehicle sales also declined by 23 per cent to 66,773 units during last month compared with 87,067 units in same month last year, the SIAM report said.