Commercial vehicle manufacturer Ashok Leyland Ltd on Thursday posted a 21.5 per cent decline in net profit at Rs 380.84 crore during the quarter ended December 31, 2018, compared to Rs 484.86 crore in the same quarter last year.
The company's total income declined by 12.3 per cent to Rs 6346.04 crore during the quarter, compared to Rs 7232.39 crore in the corresponding quarter of previous year.
Gopal Mahadevan, CFO, Ashok Leyland, said that the total industry volume (TIV) for the quarter was lower by 7 per cent owing to the high base in last year.
"If you were to look at the cumulative growth in TIV till Dec ’18 was 25% which is quite significant. LCV (light commercial vehicle) business is gaining momentum with market share in Dost segment touching 19 per cent in Q3. 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. Our strong balance sheet position continues, and we are preparing for growth next year,” he said.
Vinod K. Dasari, managing director of Ashok Leyland, said the company has achieved BS6 (Bharat Stage 6, a standard to curb pollution) across the entire range of engines on its test beds.
"Coupled with the modularity of vehicles we are planning from 2020, it presents exciting opportunities for differentiating Ashok Leyland’s offerings to the customers. Equally, we hope that post elections, there will be greater spending on defence as we will then see orders for the many tenders won by us over last couple of years," he said.
"Lastly, we are excited about the LCV business. Now that the LCV business is merged with Ashok Leyland, we will offer the entire range of LCVs from 2020. This will help complete the range and Ashok Leyland will then be able to offer a full range of CVs which are also Left Hand Drive (LHD) compliant, giving a boost to exports. Equally in near term, I expect gains from the BS6 pre-buy in next fiscal,” he added.