Commercial Vehicle major Ashok Leyland has posted a decline of 97 per cent in standalone profit before tax at Rs 19.11 crore during the quarter ended September, 2019, as compared to Rs 670.8 crore during same quarter last year.
Total income declined 48 per cent to Rs 3,975 crore during the quarter from Rs 7,648.65 crore during same quarter last year. The company said that the profit before tax (before exceptional item) for the quarter was at Rs 84 crore (Rs 688 crore during the same quarter last year). Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter stood at 5.8 per cent.
Dheeraj G Hinduja, chairman, Ashok Leyland Ltd said, "The industry has witnessed a 53 per cent decline in volumes. Volumes for Ashok Leyland also witnessed a significant drop in this quarter, despite this, we have been able to achieve an EBITDA of 5.8 per cent. Some of the cost management programs initiated early this year have yielded benefits and are reflected in the results".
The company claimes that it is the first Indian commercial vehicle manufacturer to receive certification from Automotive Research Association of India (ARAI) for its whole range of heavy duty BS VI vehicles.
"Along with the rollout of the BS VI vehicles, we will also be introducing our Modular Business Platform giving our customers the flexibility to choose vehicles as per their specific needs and enable a faster response from us," he added.
Gopal Mahadevan, whole time director and chief financial officer of the company said, "We commenced our productivity drive and cost reduction programme well in advance. These initiatives have gained momentum and have helped us achieve a sizeable reduction in costs. We are closely watching the developments in the industry"
The company has seen exceptional items including a voluntary retirement scheme of Rs 44.74 crore during the quarter.