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Ashok Leyland has reported a loss of Rs 167.20 crore during the third quarter ended December 31, 2013 as compared to profit of Rs 74.14 crore, during the same period last year. The commercial vehicle major reported loss despite it clocked in around Rs 134 crore by diluting stake in its non-core business and sale of some assets.
"The continuing slowdown in the commercial vehicle business and a year on year drop of 32% in Total Industry Volume (TIV) in third quarter reflected in Ashok Leyland’s performance," said the company in a statement. Company's total income dropped to Rs 1,953.21 crore from Rs 2,406.36 crore, a year ago.
Company's finance cost has increased to Rs 115.25 crore during the quarter from Rs 107.10 crore, a year ago.
Yaresh Kothari, Research Analyst- Automobile at Angel Broking commented "there is a loss in operating front, EBITDA is also negative and company reported the loss, even after have benefited from Rs 100 crore profit from sale stake in its non-core business and another Rs 34 crore from the sale of immovable assets".
In December 2013, the Hinduja Group flagship Ashok Leyland sold its equity shares in IndusInd Bank worth around Rs 123 crore.
Vinod K Dasari, managing director, Ashok Leyland said "in line with its policy of ensuring fiscal prudence, the company is working to lower costs, reduce debt and divest non-core assets. There has been a significant reduction in operating costs and lowered working capital; including a VRS for about 500 executives".
He added, “we look forward to the general optimism associated with fourth quarter. Our latest offering, the CAPTAIN range of heavy trucks and we hope orders under JNNURM will commence in the fourth quarter,” said Dasari.
