Commercial vehicle major, Ashok Leyland reported profit after tax (PAT) of Rs 240 crore (-89%) in FY2019-20as against Rs 1,983 crore a year-ago, on the back of subdued demand. The company reported revenue of Rs 17,467 crore for FY 2020, down 40 percent, as against Rs 29,055 crore for the same period last year. The company sold 125,253 CVs, down 37 percent YoY.
For the Q4 FY2020 the revenue was Rs 3,838 crore (-57%) as against Rs 8,846 crore for the same period last year. The loss after tax was at Rs 57 crore (-108%) as against profit of Rs 653 crore. During the quarter, the company sold 25,504 units, compared to 59,521 units for the same period last year. It maybe noted that the commercial vehicle industry has been witnessing a tough period spread over six quarters, on the back of several factors including revised axle norms, weak economic activity and transition to BS-VI among others.
Vipin Sondhi, MD and CEO, Ashok Leyland said, “This has been a challenging year for the industry, which witnessed a significant decline in volumes (42%). Consequently, Ashok Leyland also saw a reduction in volume. Despite the drop in the volumes, we have been able to achieve an EBITDA of 6.7 percent, owing to the pan-company efforts to drive profitability. Despite the challenging times we continued our legacy of introducing new and innovative technology in the industry. The unique Modular Business Platform AVTR, gives our customers the flexibility to choose vehicles as per their requirements. This BS VI Platform with the innovative i-Gen6 technology, which is an indigenous solution using mid-NoX technology suited for Indian conditions, will be a game changer in the industry. There has been a very positive customer response for AVTR and the enquiries received for AVTR, as well as our LCV range is a very encouraging sign for the quarters to follow.”
Gopal Mahadevan, whole time director and CFO, Ashok Leyland said, “We continue our productivity and cost reduction programs started earlier in the year. These initiatives have helped us achieve a sizeable reduction in costs. We are also focusing on improving cash flows and conserving resources for future growth initiatives.”