Ashok Leyland declined 1.02% to Rs 53.40 on BSE after the company posted a consolidated net loss of Rs 389 crore in Q1 June 2020 compared with net profit of Rs 275 crore reported in Q1 June 2019.
Consolidated income from operations for quarter ending June 2020 stood at Rs 1480 crore, tumbling 77% from Rs 6514.73 crore in the same period last year. The result was announced after market hours yesterday, 12 August 2020.Ashok Leyland registered a pre tax loss of Rs 527.07 crore in Q1 June 2020 as against a profit before tax of Rs 441.06 crore in Q1 June 2019. The commercial vehicle maker received a net tax rebate of Rs 138.25 crore in Q1 June 2020.
On a standalone basis, Ashok Leyland accounted a net loss of Rs 388.80 crore in Q1 June 2020 as against net profit of Rs 230.22 crore accounted in Q1 June 2019. Revenue for quarter ending June 2020 stood at Rs 645.20 crore, declining 88.5% from Rs 5611.76 crore reported in the corresponding period last year.
The commercial vehicle manufacturer said that a drop in revenue was due to the lock down on account of the COVID-19 pandemic. With virtually no operations or revenues in the first part of this quarter owing to the lock down, the demand is seen to be gradually opening up as the lock down is being eased.
Commenting on company's performance, Vipin Sondhi, MD & CEO Ashok Leyland said, With the pandemic hitting us, this has been one of the most challenging quarters for the industry. We saw a significant decline in volumes, consequently, Ashok Leyland also saw a reduction in volume, affecting the financial performance of the company adversely. Despite the challenging times we went ahead and launched the unique Modular Business Platform AVTR, which gives our customers the flexibility to choose vehicles as per their requirements. This will be a game changer in the industry and we have already rolled out over 2000 of these vehicles till date this year and together with our LCV range we have already rolled out 10000 BS VI vehicles. This is indeed a very encouraging sign for the quarters to follow.
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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