All Rights Reserved Finance News 2020.
Ashok Leyland Q4 results: Reports standalone loss of Rs 57 crore
Mumbai: Hinduja Group flagship Ashok Leyland reported a loss for the March quarter since revenue more than halved caused by sharp contraction in demand arising from various reasons including excess capacity in the travel sector, increase in vehicle rates and weak macro-economic surroundings.
The leading commercial motor vehicle maker reported a standalone loss of Rs 57 crore for the quarter, even though revenue declined by 57% to Rs 3,838 crore from Rs 6,846 crore a year ago. Cash flow before interest, tax, wear and tear and amortisation (EBITDA) decreased by 81% to Rs 183 crore.
The firm took an exceptional charge of Rs 69 crore through the quarter due to impairment around investments and discontinuation of certain products.
“This is a huge challenging year for the sector, which witnessed a significant decrease in volumes (42%). For that reason, Ashok Leyland also did find a reduction in volume. Despite the lower in the volumes, we have been capable to achieve an EBITDA of 6.7%. owing to this pan-company efforts to drive profits,” said Vipin Sondhi, managing director, Ashok Leyland.
For the full fiscal calendar year ending March 2020, the organization reported a profit of Rs 240 crore, down 88% over the preceding fiscal calendar year. Revenue for the year decreased by 40% to Rs 17,468 crore. Total year EBITDA declined by simply 63% to Rs you,174 crore.
“We keep on our productivity and price reduction programs started before in the year. These initiatives currently have helped us achieve a big reduction in costs. We are in addition focusing on improving cash goes and conserving resources for foreseeable future growth initiatives,” mentioned Gopal Mahadevan, chief monetary officer, Ashok Leyland.