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Ashok Leyland's Q2 Profit Declines By 93 Per Cent

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Ashok Leyland has reported a 93 per cent decline in Q2 FY2020 profit at Rs. 39 crores as compared to Rs. 528 crore in the same period last y...

Ashok Leyland has reported a 93 per cent decline in Q2 FY2020 profit at Rs. 39 crores as compared to Rs. 528 crore in the same period last year. EBIDTA for the same quarter stood at 5.8 per cent while the revenue went down by 48 per cent at Rs. 3929 crore as compared to Rs.7621 crore in the same period last year. Company's profit before tax (PBT) was even lesser at Rs. 19.11 crore against a PBT of 360.74 crore, a drop of 95 per cent. However, Ashok Leyland has made up to some extent through deferred tax gain of Rs. 46.83 crore.

Dheeraj G Hinduja, Chairman, Ashok Leyland Limited said, "The industry has witnessed a 53 per cent decline in volumes. Volumes for Ashok Leyland also witnessed a significant drop in this quarter, despite this, we have been able to achieve an EBITDA of 5.8 per cent. Some of the cost management programs initiated early this year have yielded benefits and are reflected in the results. We are very proud to be the first Indian commercial vehicle manufacturer to receive ARAl certification for our whole range of heavy duty BS VI vehicles."

Ashok Leyland's profit for the first six months of the FY2020 went down by 72 per cent at Rs. 269 crore as compared to a profit of Rs. 949 crore. Company's EBIDTA for the period stood at 8 per cent while its revenue went down by 31 per cent at Rs. 9613 crore as compared to Rs. 13,884 crore in the same period last year. It's half yearly PBT stood at Rs. 465 crore against Rs. 1246 crore in the same period last year, a slump of 63 per cent.



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