Caught in one of the “steepest and severest” downturns, commercial vehicle maker Ashok Leyland posted a net loss of Rs 141.75 crore in the first quarter of 2013-14 compared with a net profit of Rs 66.93 crore in the corresponding quarter last year. Total Q1 income was down 22 per cent at Rs 2,363 crore (Rs 3,026 crore). The company’s share tumbled almost 10 per cent to close at Rs 15.80 on the BSE on Tuesday.

Vinod K. Dasari, Managing Director, however, said, in a press release that the “situation affords us an opportunity to streamline our processes to become leaner and more customer-oriented.”

Total sales for the quarter were down 26 per cent at 14,900 (20,239) vehicles. Domestic volumes were 12,960 (17,335), down 25 per cent. Sales of light commercial vehicle Dost were down to 6,824 units (7,248). Sales from international operations were 1,940 (2,904). Apart from a drop in volumes, heavy discounting of vehicles to compete in the marketplace eroded profits, said the company release.

Ashok Leyland is betting on new launches this year — the A-truck (called Boss), N-truck and Neptune engine, and the Partner, Stile and Dost variants (from the LCV joint venture with Nissan). There are “a few green shoots though the economy remains largely bearish,” said Dasari, addressing shareholders at the company’s annual general meeting.

“The monsoon is on time. The government has kick-started stalled road-building projects. The Jawaharlal Nehru National Urban Renewal Mission, renewal of mining licence and the new Defence procurement are positives for us.”

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