Hinduja Group-owned Ashok Leyland Ltd. on Friday reported a loss of Rs 147 crore for the quarter ended on September 30, against a profit of Rs 39 crore in the last year quarter. 
The company’s revenue from operations declined 28 per cent at Rs 2,837 crore in the September quarter, as compared to Rs 3,930 crore in the year-ago quarter. The sharp decline in its revenue is due to the muted demand for commercial vehicles (CVs) as freight carriers and truck utilization levels remained continued as subdued.
“All the a-cyclical businesses including LCVs, aftermarket, defence and power solutions have performed really well during the quarter. Focus on operating cost and material cost optimization will continue, even as we pursue growth,” said Gopal Mahadevan, Whole Time Director and CFO, Ashok Leyland Ltd.
During the quarter, the commercial vehicle manufacturer had sold 19,445 units of CVs against 28,936 units in the year-ago period. Earlier this year, it reported a loss of Rs 389 crore and revenue of Rs 651 crore in the quarter ended on 30 June, 2020. However, it has recorded sharp recovery on a sequential basis as economic activities picked pace after the lockdown period. Its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) during the September quarter was at 2.8 per cent against a -51.2 per cent in the June quarter.