Ashok Leyland's profit dropped by 45 per cent to Rs 230 crore in Q1FY20 from Rs 421.63 crore reported in the corresponding quarter of the last year. However, the company's market share grew by four per cent to 34.1 per cent in the medium and heavy commercial vehicle (MHCV) segment during the quarter.
The revenue of the company dropped by nine per cent to Rs 5,684 crore from Rs 6,263 crore year-on-year.
The company's EBITDA came in at 9.4 per cent despite the decline in revenue.
Dheerja G Hinduja, chairman, Ashok Leyland, said that the industry witnessed a 17 per cent decline in volume.
Gopal Mahadevan, the whole time director and CFO of the company, said that in view of the of slower demand, the company was closely watching the developments in the industry.
Earlier in the day, while addressing the shareholders at the company's AGM, he said that a stable government at the Centre augurs well for the Indian business and industry.
"Commercial Vehicle Industry, in the short to medium term, we see continuance of investment in infrastructure, revival of the defence mobility spending and the much needed relief to the liquidity challenges of NBFCs. While the expected pre-buy FY20 on account of the introduction of BS VI from next year could result in a surge in demand in the second half of the year, it is important that the government provides a policy guideline to the autosector that include policy announcement such as vehicle scrappage, bus body code and others," said Hinduja.
He added, "The company has laid out plan to meet any challenge and has monitoring and responding to the developments on a real time basis."
"To sustain the growth momentum and maintain the technological edge, we have been investing in extending our product range", said Hinduja.