The profit after tax ie PAT for Ashok Leyland nosedived by 45% in the first quarter of the current fiscal year. The company on Wednesday reported a PAT of Rs.230 cr for Q1 of FY19-20 against Rs.422 cr in Q1 of FY18-19.
The gross revenue for Q1 FY19-20 dropped by 9% to Rs.5684 cr, against Rs.6263 cr in Q1 of FY18-19. The good news for the company is that it registered an increase of 4% in M&HCV market share and stood good at 34.1% market share in Q1. In the LCV segment, the company posted a growth of 12% despite the TIV dropping by 5%.
The growth in market share is attributed to the new products launched by the company which included the likes of Boss 1916, 4623 Tractor, 4223 MAV, High Horse Power Tractor 5532 and the 24 and 32 feet fully built containers in premium and economy segment.
The chairman of the company, Dheeraj Hinduja said that although the revenues have declined due to the efficient cost management company has been able to achieve an EBITDA of 9.4%. He further added that the company has invested resources for preparing itself to meet new emission norms and is well set to introduce BSVI vehicles.
The CFO of the company said that the lower demand currently witnessed in the market is being closely watched by the company and all steps and initiatives are being taken to remain cost-competitive by driving productivity and growth initiatives.
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