Commercial vehicle manufacturer Ashok Leyland Ltd. reported a 92.6% dip in standalone net profit to ₹38.87 crore for the second quarter ended September 2019, from ₹527.74 crore a year earlier.
Revenue from operations slumped 48.43% to ₹3,929.50 crore due to a drop in total industry volume.
“The industry has witnessed a 53% decline in volumes. Volumes for Ashok Leyland also witnessed a significant drop in this quarter; despite this, we have been able to achieve an EBITDA (earnings before tax, depreciation and amortisation)margin of 5.8%,” said Dheeraj G. Hinduja, chairman, Ashok Leyland Ltd. “Some of the cost management programmes initiated early this year have yielded benefits and are reflected in the results,” Mr. Hinduja added.
Focus on cost reduction
“We commenced our productivity drive and cost reduction programme well in advance,” said Gopal Mahadevan, whole time director and chief financial officer, Ashok Leyland Ltd.
“These initiatives have gained momentum and have helped us achieve a sizeable reduction in costs. We are closely watching the developments in the industry,” Mr. Mahadevan added.
