Ashok Leyland undertakes cost cutting measures to save Rs 500 crore

Ashok Leyland reported a 9 per cent revenue drop during the quarter ended June 30, 2019, at Rs 5,684 crore

Commercial vehicle major Ashok Leyland has undertaken cost cutting measures which will save around Rs 500 crore. The company added that it would continue with its capex plans which would be around Rs 1,700-2,000 crore.

Gopal Mahadevan, whole time director and CFO, Ashok Leyland, said that the cost cutting measures had been undertaken in various areas including administration, manufacturing, travel, communication, consulting etc.

When asked if the company would reduce manpower to bring down the cost, he said that instead of adding new people, the company was looking at optimising existing resources.

Speaking on capex, Mahadevan said, the company would