Ashok Leyland writes-off Rs.157 crore in JV with John Deere

Commercial vehicle maker Ashok Leyland Ltd has decided to write-off Rs.157 crore in its accounts as diminution in the value of investment made in its earthmoving equipment joint venture with John Deere, said a senior company official on Thursday.

Speaking to reporters here, chief financial officer Gopal Mahadeven said a decision was taken to write-off the sum as the joint venture company - Ashok Leyland John Deere Construction Equipment Company making backhoe loader - was not performing well.

However the write down did not impact the company's second quarter bottomline in a major way as Ashok Leyland sort of off-set it with around Rs.151.82 crore profit on sale of long term investments.

Earlier Ashok Leyland decided to write down around Rs.224 crore invested in its joint venture with Japanese automobile maker Nissan Motor Company.

Queried whether the writing down of investments by Ashok Leyland in joint ventures is over, Mahhadevan said it cannot be predicted as the company has investments in subsidiaries and other outfilts.

Ashok Leyland Ltd. on Wednesday said it has posted a net profit of Rs.286.81 crore for the second quarter of the current fiscal.

The company said it has posted a net profit of Rs.286.81 crore for the quarter ended September 30, 2015, compared to Rs.120.68 crore for the quarter ended September 30, 2014.

The company's total income has increased from Rs.3,248.94 crore for the quarter ended September 30, 2014 to Rs.4,966.20 crore for the quarter ended September 30, 2015.