Ashok Leyland Ltd., the flagship of the Hinduja Group, reported a drop of 45.49% in its standalone net profit for the first quarter ended June 2019 to ₹230 crore on weak volumes.
During the period under review, the firm’s revenue declined 9% to ₹5,684 crore.
“While the industry has witnessed a decline in volume of 17%, Ashok Leyland’s market share has grown by 4%.
“Despite a drop in total industry volume by 5%, our light commercial vehicle (LCV) business continues to do very well and posted a growth of 12%. Our earnings before interest, taxes, depreciation and amortisation at 9.4%, despite a decline in revenues, signifies efficient cost management,” said Dheeraj G. Hinduja, chairman, Ashok Leyland.
Earlier, addressing shareholders, he had said that the firm was well on course to introduce BS-VI vehicles.
“With signs of slower demand, we are closely watching the developments in the industry. We continue to take cost out and drive productivity and growth initiatives,” said Gopal Mahadevan, CFO, Ashok Leyland.
