Home-grown commercial vehicle manufacturer, Ashok Leyland, has reported a loss of ₹ 57 crore in the last quarter of Financial Year 2019-20. In comparison, the company posted a Profit After Tax (PAT) of ₹ 653 crore during the same period last fiscal year. The total revenue generated by the company between January and March 2020 stood at ₹ 3,838 crore, a decline of almost 57 per cent, as compared to the ₹ 8846 crore revenue generated in Q4 of FY2019.
FY2020 was a challenging year for the entire India auto industry, which was first plagued by poor demand, followed by changing emission norms, and later the coronavirus pandemic and the resultant lockdown. In fact, the fourth quarter of the last fiscal year was bad for almost all automakers in India, and Ashok Leyland was no exception.
As for the entire financial year 2019-20, Ashok Leyland reported achieving a PAT of ₹ 240 crore, down by a massive 88 per cent compared to the ₹ 1,983 profit the company made in Financial Year 2018-19. The company's total revenue for the last fiscal year stood at ₹ 17,467 crore, a decline of close to 40 per cent as against the ₹ 29,055 crore revenue generated during the previous financial year. The company's EBITDA for the year was at 6.7 per cent.
Commenting on the company's performance Vipin Sondhi, MD & CEO, Ashok Leyland Limited, said, "This 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 volume. Despite the drop in the volumes, we have been able to achieve an EBITDA of 6.7 per cent owing to the pan-company efforts to drive profitability."
Commenting on the company financial strategy for the current year, Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland Limited, said, "We continue our productivity and cost reduction programs started earlier in the year. These initiatives have helped us achieve a sizeable reduction in costs. We are also focusing on improving cash flows and conserving resources for future growth initiatives."