Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / Ashok Leyland reports `167 crore loss in Q3
BackBack

Ashok Leyland reports `167 crore loss in Q3

The company had posted a net profit of `74.1 crore in the year-ago quarter

A Bloomberg survey of analysts had forecast a loss of `158 crore for the three months ended 31 December, and sales at `1,950.9 crore.Premium
A Bloomberg survey of analysts had forecast a loss of `158 crore for the three months ended 31 December, and sales at `1,950.9 crore.

Chennai: Amid a slide in the commercial vehicle industry, Ashok Leyland Ltd, India’s second biggest maker of trucks and buses, posted a third quarter loss, missing analysts’ estimates, even as it recorded gains from selling a long-term investment and property.

The company reported a loss of 167.2 crore for the December quarter. The company had posted a net profit of 74.1 crore in the year-ago quarter.

Net sales fell by 19% to 1,903.3 crore.

A Bloomberg survey of analysts had forecast a loss of 158 crore for the three months ended 31 December, and sales at 1,950.9 crore.

The company, which is trying to pare its debt by 1,000 crore in the year to March, made a one-time gain from the sale of long-term investment worth 100.3 crore, and also sold some property worth 34 crore.

The truck maker, in a move to cut manpower costs and align fixed costs to reduced activity levels, offered a voluntary retirement scheme during the quarter to 500 of its employees, which cost it 43 crore.

“The company’s performance continues to disappoint. Adjusting for the one-time gain and loss, the company posted a loss of 260 crore, while we expected a loss of 151 crore," said Yaresh Kothari, an analyst at Angel Broking Ltd.

The company’s operating margin fell 5% in the quarter from the 1% it saw last in the year-ago quarter, said Kothari. “The margins came under pressure because of the poor sales, high discounting resulting in lower operating leverage," he said.

Ashok Leyland is operating at about 60% of its capacity, he said.

Ashok Leyland’s medium and heavy commercial vehicle volume fell 26% to 41,478 units in the April to December period, said Kothari, in line with the total industry’s decline in the segment, which fell 27% to 145,051 units.

Shares of Ashok Leyland fell 0.30% to 16.80 on BSE on Tuesday, while the benchmark Sensex gained 0.22% to 21,251.12 points.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 21 Jan 2014, 07:27 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App