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Truck and bus maker Ashok Leyland has reported a net loss of ₹57 crore for the fourth quarter ended March 31, 2020, against a net profit of ₹653 crore in the year-ago period, on the back of an unprecedented slowdown in the commercial vehicle market.
The company reported a loss before exceptional item and tax of ₹3 crore, compared with a profit before exceptional item and tax of ₹818 crore in Q4 FY19.
Its revenue from operations dropped significantly to ₹3,838 crore (₹8,846 crore).
For the full year ended March 31, 2020, the company's net profit was significantly lower at ₹240 crore, against ₹1,983 crore in FY19. The PBT for FY20 was ₹362 crore (₹2,497 crore).
EBITDA for the year was at 6.7 per cent. It reported a revenue of ₹1,7467 crore (₹29,055 crore).
“Despite the drop in volumes, we have been able to achieve an EBITDA of 6.7 per cent owing to the pan-company efforts to drive profitability,” Vipin Sondhi, MD & CEO, Ashok Leyland, said in a statement.
FY20 has been a challenging year for the industry, which witnessed a significant decline in volumes (42 per cent). Consequently, Ashok Leyland also saw a reduction in volumes, the statement added.
"Ashok Leyland reported highly subdued 4Q FY20 results due to negative operating leverage on account of significant decline of over 60 per cent YoY in its M&HCV volumes during the quarter,” according to Mitul Shah, Vice President-Research, Reliance Securities.
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