Commercial vehicle major Ashok Leyland has reported an 89 per cent decline in profit before tax at Rs 54.17 crore for the quarter ended December 31, 2019 from Rs 483.57 crore, a year ago. The company's total income slid to Rs 4,037.98 crore from Rs 6,346.04 crore on the backdrop of slowdown in overall sales.
Vipin Sondhi, MD & CEO, Ashok Leyland Limited said the industry continued to witness a decline in volume (around 39 per cent during the quarter). Volumes at Ashok Leyland also dropped in this quarter. Despite this, the company was able to achieve an EBITDA of 5.6 per cent.
Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland Limited said, "We continue our productivity and cost reduction programmes started earlier in the year. 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".
The company started suplying range of heavy duty BS VI vehicles in the market, before the April 2020 deadline.
"We are confident that with this, we will be providing the best suited solution for Indian conditions. Along with the rollout 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," said Sondhi.