Ashok Leyland on Thursday reported a loss of Rs 19.38 crore in the third quarter ended December 31, 2020 compared to a profit of Rs 27.75 in the year-ago period. The net loss includes a one- time VRS cost of Rs 85 crore. The company posted a net loss of Rs 147 crore in preceding September quarter (Q2FY21).
Revenues increased to Rs 4,813.51 crore for the period under review as against 4,015.65 crore.
The company brought down net debt to Rs 2,880 crore in third quarter from Rs 3,076 crore in Q2FY21, strengthening the balance sheet of the company.
After eight continuous quarters of de-growth, the MHCV Truck Total Industry Volume (TIV) has registered a year-on-year growth of 16 per cent in third quarter. While the industry bus volumes continued to lag, they are expected to recover with the opening up of restrictions.
Commenting on the performance, Gopal Mahadevan, director and CFO, Ashok Leyland said, “The performance for this quarter which resulted in a positive EBITDA of 5.3 per cent was made possible owing to the revenue enhancement and operational efficiency initiatives of the company during challenging times. LCV, After Market, Defence and Power Solutions businesses
have performed really well during the quarter. The focus on resetting the operating cost to revenues and material cost optimisation will continue.”