Hinduja Group flagship Ashok Leyland on Wednesday said its consolidated net profit declined 86.68 per cent to Rs 57.11 crore for the third quarter ended on December 31, 2019.
The company had posted a net profit of Rs 428.76 crore for the December quarter of 2018-19.
Revenue from operations declined to Rs 5,188.84 crore for the third quarter as compared with Rs 7,489.64 crore in the same period of previous fiscal, Ashok Leyland said in a regulatory filing.
"The industry continued to witness a decline in volume (39 per cent). Ashok Leyland also witnessed a volume drop in this quarter," Ashok Leyland MD and CEO Vipin Sondhi said.
The company has been seeding its range of heavy duty BS-VI vehicles in the market, well before the April 2020 deadline, he added.
"Along with the roll-out of the BS-VI vehicles, we will also be introducing our unique modular business platform that will give our customers the flexibility to choose vehicles as per their requirement," Sondhi said.
Ashok Leyland Whole Time Director and Chief Financial Officer Gopal Mahadevan said the company continues with its productivity and cost reduction programmes started earlier.
"These initiatives have helped us achieve a sizeable reduction in costs. We are also focusing on cash flows and conserving resources for future growth initiatives," he added.
Shares of Ashok Leyland on Wednesday ended 1.81 per cent down at Rs 81.35 apiece on the BSE.
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