You are here: Home » Companies » Results
Business Standard

Ashok Leyland Q3 results: Net loss at Rs 19 crore due to VRS cost

Revenues increased to Rs 4,813.51 crore for the period under review

Ashok Leyland | Q3 results

T E Narasimhan  |  Chennai 

Ashok Leyland undertakes cost cutting measures to save Rs 500 crore
The company has brought down net debt to Rs 2,880 crore in third quarter

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, 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.”

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, February 11 2021. 19:28 IST