Ashok Leyland fell 1.12% to Rs 84 after the commercial vehicles manufacturer reported a consolidated net loss of Rs 122.95 crore in Q2 September 2020 compared with net profit of Rs 44.60 crore in Q2 September 2019.
Net sales tumbled nearly 24% year on year to Rs 3,835.85 crore in Q2 September 2020 from Rs 5,033 crore posted in Q2 September 2019. The result was announced after market hours on 6 November 2020.The commercial vehicle maker posted a pre-tax loss of Rs 79.1 crore in Q2 September 2020 as compared to a profit before tax of Rs 87.83 registered in Q2 September 2019. The company paid current tax expense of Rs 35.1 crore in Q2 September 2020 as against a tax rebate of Rs 31.2 crore in Q2 September 2019.
The company reported a positive EBITDA of 2.8% for Q2 FY21 as against a negative EBITDA of 51.2% in Q1 FY21. It generated Rs 1,208 crore of cash from operations after capital expenditure and investments, which helped the company bring down net debt to Rs 3,076 crore in Q2 September 2020 from Rs 4,284 crore in Q1 June 2020 further strengthening the balance sheet of the company. Debt equity has reduced from 0.6 times at the end of June 2020 to 0.5 times as of end of September 2020.
The heavy vehicle manufacturer said following the successful launch of its Modular Platform AVTR, it continued its planned product launches of the Bada Dost in the Phoenix Platform in the LCV segment and Boss LE and LX in the ICV segment. All these products have been very well received by customers and has helped the company increase its market presence. Going forward, the company expects Q3 and Q4 to be much better quarters.
Vipin Sondhi, MD & CEO, Ashok Leyland said "While the challenges in the market due to COVID19 continue, the company has seen a marked improvement in its performance in this quarter."
Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.
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