Ashok Leyland Q1 profit drops by 45 pc to Rs 230 crore, to raise Rs 600 crore debt
Chennai (Tamil Nadu) [India], Aug 1 (ANI): Ashok Leyland, a flagship company of the Hinduja Group and the country's second largest commercial vehicle manufacturer, has reported 45 per cent drop in its profit after tax at Rs 230 crore in the April to June quarter from Rs 422 crore in the same quarter of previous year.
ANI
Aug 01, 2019 10:49 IST
Chennai (Tamil Nadu) [India], Aug 1 (ANI): Ashok Leyland, a flagship company of the Hinduja Group and the country's second largest commercial vehicle manufacturer, has reported 45 per cent drop in its profit after tax at Rs 230 crore in the April to June quarter from Rs 422 crore in the same quarter of previous year.
The company's consolidated profit before tax slipped to Rs 361 crore from Rs 536 crore in the same period. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at 9.4 per cent despite decline in revenue.
The consolidated total revenue fell by 9 per cent to Rs 5,684 crore in Q1 of FY 2019-20 compared to Rs 6,263 crore in Q1 of FY 2018-19.
Still, the company's market share in the medium and heavy commercial vehicle segment for the quarter grew by 4 per cent to 34.1 per cent.
"While the industry has witnessed a decline in volume of 17 per cent, Ashok Leyland's market share has grown by 4 per cent," said Ashok Leyland's Chairman Dheeraj G Hinduja.
"Our EBITDA at 9.4 per cent despite decline in revenues signifies efficient cost management in the company. We are well on course to introduce BS-VI vehicles and will be seeding vehicles shortly. Despite a drop in total industry volume by 5 per cent, our light commercial vehicle business continues to do very well and posted a growth of 12 per cent," he said in a statement.
In a separate development, Ashok Leyland informed stock exchanges that its board has approved the plan to raise up to Rs 600 crore in long-term debt.
"The board of directors of the company has approved to offer or invite subscriptions for bonds, secured/unsecured, redeemable non-convertible debentures, in one or more series/tranches, aggregating up to Rs 600 crore, subject to approval of the shareholders and such other approvals," it said in regulatory filings.
(ANI)
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