The downturn in the commercial vehicle industry continued into the second quarter of FY 2013-14, and Ashok Leyland, flagship of the Hinduja Group, has reported a revenue of Rs 4,913 crores in the first half of the current fiscal, as against Rs 6,346 crores in the corresponding period last fiscal.
The market continues to contract, with the Total Industry Volume (M&HCV Domestic) down by 25%. Ashok Leyland clocked total M&HCV volumes of 30,820 nos. (41,411 nos) and LCV volumes of 14,021 nos. (15,913 nos). Despite the challenging scenario, the Company maintained market share. It retained leadership position in the passenger segment aided by better penetration in the ICV bus segment.
While the Company has reported a net loss of Rs 167 crores for the first half of FY14 (Net Profit of Rs 210 crores), net loss has reduced from Rs 142 crores in Q1 to Rs 25 crores in Q2. Sale of long term investment generated Rs 48 crores during the current quarter. EBITDA % improved from 1.5% in Q1 to 3.1% in Q2 in the current fiscal.
“Results are reflective of the tough market situation experienced during the first half of the year. There is likely to be some improvement in Q4 but we do not expect any significant change. As an organization we have used this opportunity to re-structure and will remain focused on creating better value for customers through new products, improving operating efficiency and divesting some of the non-core investments. Our recent sale of Defiance Testing & Engineering Services is part of this overall company strategy,” said Vinod K. Dasari, Managing Director, Ashok Leyland.
“BOSS, our breakthrough product in the ICV segment, was launched during the quarter and initial customer feedback on fuel efficiency and driving comfort has been very encouraging. The new engine platform, Neptune was launched in the multi-axle haulage vehicle called the Sankagiri Express. Our new MPV – STILE – the second product from the Ashok Leyland-Nissan alliance has just been launched and initial feedback is positive. We are confident these new products will help build volume and lead to greater customer satisfaction. We continue to invest in product development, network expansion and quality improvement initiatives,” he further added.
