Largest CV maker Ashok Leyland's net profit plunges 93%
Friday - November 8, 2019 7:54 pm , Category : BUSINESS
Mumbai, Nov 8 (IANS) India's largest commercial vehicle maker Ashok Leyland on Friday said that its net profit fell by 93 per cent to Rs 39 crore in the September quarter from Rs 528 crore reported in the corresponding quarter of last year, indicating severe stress in India's auto sector.Ashok Leyland reported a revenue of Rs 3,929 crore, which was 48 per cent lower than the same period last year. "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 an earnings before interest, tax, depreciation and amortization (EBITDA) of 5.8 per cent," said Dheeraj G. Hinduja, Chairman, Ashok Leyland. He further said that some of the cost management programmes initiated early this year have yielded benefits and are reflected in the results. "We are very proud to be the first Indian commercial vehicle manufacturer to receive ARAl certification for our whole range of heavy duty BS VI vehicles," Hinduja added.Ashok Leyland had earlier said it had sold a total of 9,857 units in October, with its truck sales declining and its bus sales registering a growth.Last month, the company had declared a 'no-working day' for five of its factories across India. The commercial vehicle major had attributed it to weak demand.