Ashok Leyland's profit drops to Rs 381 crore in Q3 FY19 on lower sales

Ashok Leyland said on Thursday that its net profit tumbled to Rs 381 crore during October to December of 2018.

The flagship company of Hinduja Group had reported a net profit of Rs 485 crore in the same quarter of previous year.

The drop in sales also shaved revenues which totalled Rs 6,325 crore in Q3 of 2018-19 compared to Rs 7,191 crore in Q3 of 2017-18. The EBITDA (earnings before interest, tax, depreciation and amortisation) slid to Rs 650 crore from Rs 839 crore in the same period.

However, revenues taken together during first three quarters of current financial year (March to December 2018) increased by 15 per cent to Rs 20,209 crore compared to Rs 17,576 crore in the corresponding period of previous year.

The net profit increased by 36 per cent to Rs 1,330 crore against Rs 975 crore and EBITDA moved up 17 per cent to Rs 2,150 crore from Rs 1,838 crore.

"Total industry volume for the quarter was lower by 7 per cent owing to the high base in last year," said Gopal Mahadevan, Chief Financial Officer of Ashok Leyland.

"Our financial performance has been satisfying given the twin challenges of pricing pressure and higher input costs as we continue to post double-digit EBITDA margins."

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