Ashok Leyland dropped 5.7% to Rs 95.90 at 15:15 IST on BSE after net profit dropped 66.5% to Rs 77.02 crore on 31.79% rise in total income to Rs 5987.23 crore in Q4 March 2016 over Q4 March 2015.
The announcement was made during market hours today, 25 May 2016.Meanwhile, the S&P BSE Sensex was up 562.33 points or 2.22% at 25,876.97.
Huge volumes were witnessed on the counter. On BSE, so far 33.71 lakh shares were traded in the counter as against average daily volume of 11.86 lakh shares in the past one quarter. The stock hit a high of Rs 105.25 and low of Rs 94.65 so far during the day. The stock had hit a record high of Rs 112.80 on 13 April 2015. The stock had hit a 52-week low of Rs 63.85 on 16 June 2015. The stock had underperformed the market over the past one month till 24 May 2016, sliding 3.42% compared with Sensex's 2.06% fall. The scrip had, however, outperformed the market in past one quarter, advancing 16.23% as against Sensex's 9.6% rise.
The large-cap company has equity capital of Rs 284.59 crore. Face value per share is Rs 1.
Speaking at the time of announcement of results, Vinod K. Dasari, Managing Director, Ashok Leyland, said,that the company is reviewing portfolio of investments and is rationalizing them. In the current year ending 31 March 2017 (FY 2017) the company has decided to impair some of its investments and this is in line with the strategy of increasing focus on the core business as the company move forward. The company would be completing this rationalization process by end of the FY 2017. The focus of the company would continue to pursue the path of profitable growth.
Ashok Leyland said that the board of directors of the company at its meeting held today, 25 May 2016, approved raising of funds by issue of 13.5 crore equity shares to eligible investors including qualified institutional buyers, foreign institutions, foreign investors, nonresidents, corporate bodies, mutual funds, banks, insurance companies, pension funds or other eligible investors.
The board also approved raising of funds by issue of secured/unsecured redeemable non-convertible debentures in one or more series/tranches on private placement basis for an amount upto Rs 700 crore at an interest rate that will be determined by the prevailing money market conditions at the time of borrowing subject to the approval of the shareholders.
Ashok Leyland is the second largest manufacturer of commercial vehicles in terms of sales in India.
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