Commercial vehicle major, Ashok Leyland today reported its financial result for Q2 FY2020. The company saw revenue of Rs 3,929 crore, down 48 percent compared to same period last year (Rs. 7,621 crore).
During the same period the PAT came at Rs 39 crore, which was 92 percent lower YoY (Q2 FY2019: Rs 528 crore).
Ashok Leyland also reported revenue for H1 FY2020, which came at Rs 9,613 crore, a decline of 31 percent in comparison to H1 FY2019 (Rs 13,884 crore). The PAT in the same period was reported at Rs 269 crore, which is 71 percent less as compared to its FY 2019 , Rs 949 crore.
The EBITDA for Q2 FY2020 was at 5.8 percent while for H1 FY2020 was at 8 percent.
Commenting on the result, Dheeraj G Hinduja, chairman, Ashok Leyland said, “The industry has witnessed a 53 percent 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 percent. 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 ARAI certification for our whole range of heavy duty BS VI vehicles. Along with the rollout of the BS VI vehicles, we will also be introducing our Modular Business Platform giving our customers the flexibility to choose vehicles as per their specific needs and enable a faster response from us."
Gopal Mahadevan, whole time director and CFO, Ashok Leyland said, “We commenced our productivity drive and cost reduction program well in advance. These initiatives have gained momentum and have helped us achieve a sizeable reduction in costs. We are closely watching the developments in the industry.”
Also read: Ashok Leyland gets BS VI ready, plans overseas business expansion