Ashok Leyland's profit decreased by 45 percent to Rs 230 crore in Q1FY20 from Rs 421.63 crore summarised in the corresponding quarter of the last year. Nevertheless, the company's market share rose by four percent to 34.1 percent in the MHCV (medium and heavy commercial vehicle ) segment during the quarter. The income of the organisation descended by nine percent to Rs 5,684 crore from Rs 6,263 crore year-on-year.
The brand's EBITDA came in at 9.4 percent despite the drop in revenue. Dheeraj G Hinduja, Chairman, Ashok Leyland, stated that the market witnessed a 17 percent drop in volume. Gopal Mahadevan, the CFO and whole-time director of the firm, announced that because of the of more gradual demand, the organisation was carefully observing the developments in the industry. Earlier in the day, he said that an enduring government at the Centre augurs well for the Indian industry and business.
Hinduja stated, "Commercial Vehicle Industry, in short to medium term, we see a continuance of investment in infrastructure, the revival of the defence mobility spending and the much-needed relief to the liquidity challenges of NBFCs. While the expected pre-buy FY20 on account of the introduction of BS-VI from next year could result in a surge in demand in the second half of the year, it is important that the government provides a policy guideline to the auto sector that includes policy such as vehicle scrappage, bus body code, and others."
He further added that they have been investing in increasing their product range to sustain the technological edge and maintain the growth momentum.