Truck manufacturer Ashok Leyland reported a net loss of Rs 57 crore in the fourth quarter of Q4 FY20 as against a profit of Rs 653 crore for the same period in the previous fiscal. Revenue was at Rs 3838 crore as against Rs. 8846 crore for the same period last year.
For the financial year 2019-20, the company reported a revenue of Rs 17467 crore as against Rs 29,055 crore for the same period last year. The profit before tax (PBT) for the year was at Rs. 362 crore as against Rs 2497 crore last year, while the profit after tax (PAT) was at Rs 240 crore as against Rs 1983 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year was at 6.7%.
"This has been a challenging year for the industry, which witnessed a significant decline in volumes (of 42 per cent). Consequently, Ashok Leyland also saw a reduction in volume," Ashok Leyland Managing Director and CEO Vipin Sondhi said.
He further said, "Despite the drop in the volumes, we have been able to achieve an EBITDA of 6.7% owing to the pan-company efforts to drive profitability."
Sondhi said despite the challenging times, the company brought new products and technology with the launch of its modular business platform ''AVTR'', giving customers the flexibility to choose vehicles as per their requirements.
"There has been a very positive customer response for AVTR, and the enquiries received for AVTR, as well as our LCV range is a very encouraging sign for the quarters to follow," he said.
Gopal Mahadevan, Whole Time Director and Chief Financial Officer, Ashok Leyland Limited added that the company continues its productivity and cost reduction programs that it started earlier in the year.
‚ÄúThese 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,‚ÄĚ he said.