Rising raw material costs and demonetisation impacted December quarter performance of Ashok Leyland. The company posted an eight per cent year-on-year growth in revenues to Rs4,723 crore on the back of a nine per cent growth in unit sales of medium and heavy commercial vehicle (M&HCV) sales. Light-commercial-vehicle unit sales were down 2.5 per cent year on year in the quarter. Analysts had already given growth warnings, given the sharp decline in retail sales after demonetisation. Demand continues to be soft as fleet operators are struggling with lower capacity utilisation and fall in freight rates. Consider the movement of M&HCV unit sales for Ashok Leyland. From a 33 per cent year-on-year growth in October, unit sales growth slowed to 10 per cent in November and ended the quarter with a 9.5 per cent fall. The fall in light commercial vehicles has been steeper, with December recording a 20.5 per cent decline.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in