The company had posted a net profit of ₹428.76 crore for the December quarter of 2018-19.
Revenue from operations declined to ₹5,188.84 crore for the third quarter as compared with ₹7,489.64 crore in the same period of previous fiscal, Ashok Leyland said in a regulatory filing.
"The industry continued to witness a decline in volume (39 per cent). Ashok Leyland also witnessed a volume drop in this quarter," Ashok Leyland MD and CEO Vipin Sondhi said.
The company has been seeding its range of heavy duty BS-VI vehicles in the market, well before the April 2020 deadline, he added.
"Along with the roll-out of the BS-VI vehicles, we will also be introducing our unique modular business platform that will give our customers the flexibility to choose vehicles as per their requirement," Sondhi said.
Ashok Leyland Whole Time Director and Chief Financial Officer Gopal Mahadevan said the company continues with its productivity and cost reduction programmes started earlier.
"These initiatives have helped us achieve a sizeable reduction in costs. We are also focusing on cash flows and conserving resources for future growth initiatives," he added.
Shares of Ashok Leyland on Wednesday ended 1.81 per cent down at ₹81.35 apiece on the BSE.