Ashok Leyland reviews Rs 147 crore Q2 loss on account of weak demand for industrial autos

0
65

MUMBAI: Hinduja Group flagship Ashok Leyland on Friday reported Rs 147 crore loss for the September quarter as revenues declined 28% on account of weak demand for industrial autos within the wake of the pandemic and overcapacity within the transport sector.

Income for the fiscal second quarter fell to Rs 2,837 crore from Rs 3,930 crore a 12 months earlier. The corporate had reported a revenue of Rs 39 crore within the corresponding quarter final 12 months.

Earnings earlier than curiosity, tax, depreciation and amortisation (Ebitda) declined by 65% to Rs 80 crore whereas Ebitda margin contracted by nearly 3 proportion factors to 2.8%.

“Whereas the challenges available in the market on account of Covid-19 proceed, the corporate has seen a marked enchancment within the firm’s efficiency on this quarter,” managing director Vipin Sondhi mentioned. “As we go ahead, our deal with buyer acquisition and community enlargement will proceed,” he added. Within the previous quarter, the corporate incurred a lack of Rs 389 crore as income declined by 89% year-on-year to Rs 651 crore.

Ashok Leyland generated Rs 1,208 crore of money from operations after capital expenditure and investments, which helped it convey down internet debt to Rs 3,076 crore from Rs 4,284 crore within the earlier quarter, in line with an announcement from the corporate.

“We count on Ashok Leyland’s quantity to fall by 26% in FY21, whereas it could document robust 106% and 18% progress in FY22 and FY23, respectively,” mentioned Mitul Shah, the pinnacle of analysis at Reliance Securities. Shah predicted the corporate’s market share to be steady and assumed its Ebitda margin “conservatively” at 10.8% in FY22 and 11.4% in FY23.