BackAshok Leyland June quarter revenue crashes 89% YoY
The company attributes the revenue decline to the loss of business due to covid-19 led disruptions
PremiumCommercial vehicle manufacturer Ashok Leyland Ltd, also the flagship company of the Hinduja Group, has posted a sharp decline of 89% YoY in its June quarter revenue, which stood at ₹651 crore.
The company's Q1FY20 revenue was at ₹5,684 crore.
The company attributes the revenue decline to the loss of business due to covid-19 led disruptions.
"With virtually no operations or revenues in the first part of this quarter owing to the lock down, the demand is seen to be gradually opening up as the lock down is being eased," the company said in a statement.
Ashok Leyland has reported net loss of ₹389 crore for the June quarter as against profit of ₹230 crore for the year-ago period.
The company, like all vehicle manufacturers, had shutdown it's operations during the last week of March due to the lockdown and resumed operations after more than 45 days.
In June, it rolled out AVTR range of modular trucks under the heavy commercial vehicle or HCV segment in the past months. The modular HCV range aims at reducing costs via increasing commonality of parts.
"With the pandemic hitting us, this has been one of the most challenging quarters for the industry. We saw a significant decline in volumes, consequently, Ashok Leyland also saw a reduction in volume, affecting the financial performance of the company adversely," said Vipin Sondhi, managing director and chief executive officer, Ashok Leyland.
Sondhi said that the company has already produced more than 2,000 vehicles under its AVTR range so far.
“This is an exceptional quarter not just for the industry but also for the entire economy. We have used this time to drive disruptive cost efficiencies and productivity measures. The focus was also on maintaining liquidity, not just of the company but also our dealers and vendors. There have been tremendous learnings for us in doing business efficiently without dropping the ball on growth initiatives," said Gopal Mahadevan, chief financial officer, Ashok Leyland.
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