Chennai: Hit by global recession, heavy vehicle major Hinduja group flagship company Ashok Leyland on Friday reported a 59.5% decline in its net profit for the last fiscal.
The company’s profit dwindled to Rs190 crore for the year ended 31 March 2009, compared to Rs469.31 in the same period of last year, Ashok Leyland managing director, R Seshasayee told a press conference here.
Stating that last year was a ‘traumatic´ year in the company’s long history of 61 years, he said, “when the economic tsunami hit, I think medium and heavy vehicle industry was right up in the beach and was affected worse.. in this backdrop of very turbulent year, I think next year will be most challenging”.
The total income of the company during the fiscal year 2008-09, decreased to Rs6,030.70 crore from Rs7,800.19 crore in the previous year 2008, down 22.69%, he said.
Following the impact of the slowdown, the company forced a redrawal of its capital expenditure plans. “When all of us where looking at top line investments last year, the economy in July shifted gears downward and the medium and heavy vehicles industry were worst hit”, he said, adding that the investment plans for the next three years has been scaled down by Rs1,000 crore - from Rs3,000 crore to Rs2,000 crore”.