On a consolidated basis, the commercial vehicle maker's net profit tumbled 86.68% to Rs 57.11 crore in Q3 December 2019 (Q3 FY20) as against Rs 428.76 crore reported in Q3 December 2018 (Q3 FY19).Net sales slipped 30.48% year-on-year (Y-o-Y) to Rs 5,148.15 crore in Q3 FY20. The Q3 earnings were announced after market hours yesterday, 12 February 2020.
Profit before tax tanked 78.99% to Rs 121.29 crore Y-o-Y. Current tax expenses slumped 55.47% to Rs 65.89 crore during the period under review.
EBITDA margin stood at 5.6% in Q3 December 2019 compared with 5.8% in Q2 September 2019 and 10.3% in Q3 December 2018.
The company said that the total medium and heavy commercial vehicles (MHCV) industry volume had come down by 39%.
Commenting on the Q3 performance, Vipin Sondhi, the managing director & CEO of Ashok Leyland, has said that, "The industry continued to witness a decline in volume (39%). Ashok Leyland also witnessed a volume drop in this quarter. Despite this, we have been able to achieve an EBITDA of 5.6%. We have been seeding our range of heavy duty BS-VI vehicles in the market, well before the April 2020 deadline. We have done extensive testing on the innovative i-Gen6 solution, which is a specially designed innovative, intelligent, and indigenous solution that uses Mid-NOx technology. We are confident that with this, we will be providing the best suited solution for Indian conditions. Along with the rollout of the BS VI vehicles, we will also be introducing our unique Modular Business Platform that will give our customers the flexibility to choose vehicles as per their requirement."
Gopal Mahadevan, the whole time director & chief financial officer of Ashok Leyland, has stated that, "We continue our productivity and cost reduction programs started earlier in the year. These initiatives have helped us achieve a sizeable reduction in costs. We are also focusing on cash flows and conserving resources for future growth initiatives."
Ashok Leyland is engaged in commercial vehicles and related components. Through its subsidiaries, it is engaged in manufacturing and trading in Medium and Heavy Commercial Vehicle (MHCV), light commercial vehicles, passenger vehicles, automotive aggregates, vehicle financing and engineering design services.
Shares of Ashok Leyland fell 3.13% to Rs 78.8 on BSE.
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