Ashok Leyland falls 5% as a result of poor operating performance in the third quarter.
NEW DELHI, India – On Monday, Ashok Leyland’s shares fell along with the rest of the market, falling 5.7 percent. The commercial vehicle manufacturer posted a profit after tax of Rs 6 crore in the third quarter of this fiscal. In the same quarter the previous fiscal year, the company posted a net loss of Rs 19 crore.
The stock hit a low of Rs 125.40, down from Rs 133 at the previous close on the National Stock Exchange.
The NSE Nifty50 was down 2.09 percent at 9:30 a.m., while the BSE Sensex was down 2.14 percent.
The standalone profit in October-December was driven by a one-time gain of Rs 42 crore, although high input costs continued to put pressure on the firm’s margins, according to the figures.
According to sources, the company’s management was optimistic about the market’s revival. The company’s board of directors also approved a Rs 250 crore debt raise via non-convertible debentures on Friday.
Revenue increased by 15% year on year to Rs 5,535 crore, mostly due to higher prices and improved sales.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 12% to Rs 223 crore due to increased commodity costs. The EBITDA margin fell by 124 basis points to 4%.
“The CV sector is on the mend as a result of the improved macroeconomic environment and According to sources, Dheeraj Hinduja, Executive Chairman of Ashok Leyland, stated, “strong demand from end-user industries.”
The company reported a loss of Rs 10 on a consolidated basis.