Companies

Ashok Leyland posts ₹389-crore Q1 loss on Covid-19 lockdown

Our Bureau Chennai | Updated on August 12, 2020

Ashok Leyland’s revenue stood at ₹651 crore as against ₹5,684 crore in the Q1 of the previous fiscal   -  Bijoy Ghosh

Saw significant decline in volumes in one of the most challenging quarters

Hinduja flagship Ashok Leyland has reported a net loss of ₹389 crore for the quarter ended June 30, 2020, when compared with a net profit of ₹230 crore the year-ago quarter, due to virtually no operations or sales on account of Covid-19 lockdown.

Its revenue stood at ₹651 crore as against ₹5,684 crore in Q1 of previous fiscal.

“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, MD & CEO Ashok Leyland Ltd, said in a statement.

“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,” said Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland Ltd.

Modular business platform

Despite the challenging times, the company launched its new modular business Platform Avtr, which it expects to be a game-changer. “We have already rolled out over 2,000 of these vehicles till date this year and together with our LCV range we have already rolled out 10,000 BS-VI vehicles. This is indeed a very encouraging sign for the quarters to follow,” he added.

Meanwhile, the demand is seen to be gradually opening up as the lockdown is being eased, said the company.

Published on August 12, 2020

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