The Hinduja flagship firm reported a consolidated net loss of Rs 96.23 crore in the second quarter ended September. It had posted a consolidated net profit of Rs 69.95 crore in the same period last fiscal.
Ashok Leyland share price was down over a percent in the morning session on November 9 after the company reported loss in its Q2 results.
The Hinduja flagship firm reported a consolidated net loss of Rs 96.23 crore in the second quarter ended September. The company had posted a consolidated net profit of Rs 69.95 crore in the same period last fiscal, Ashok Leyland said in a regulatory filing.
Consolidated revenue from operations during the quarter under review stood at Rs 3,852.84 crore as against Rs 5,096.13 crore in the year-ago period, it added.
Commenting on the performance in the second quarter, Ashok Leyland Ltd Managing Director and Chief Executive Officer Vipin Sondhi said: “While the challenges in the market due to COVID-19 continue, the company has seen a marked improvement in the company’s performance in this quarter.”
The stock was trading at Rs 83.70, down Rs 1.25, or 1.47 percent at 09:54 hours. It has touched an intraday high of Rs 85.00 and an intraday low of Rs 83.35.
The performance of the company’s newly launched AVTR platform in the M&HCV segment and Bada Dost in the LCV segment gives immense confidence that the company is on the right track, he added.
Ashok Leyland reported 1 percent increase in total commercial vehicle sales at 9,989 units in October. The company had sold 9,862 units in the same month last year, Ashok Leyland said in a regulatory filing.
Domestic sales declined 2 percent to 8,885 units as against 9,079 units in October 2019, it added.
Total heavy and medium commercial vehicle sales were down 11 percent at 4,588 units as compared to 5,131 units in the year-ago month, the company said.
Light commercial vehicles sales were, however, up by 14 percent at 5,401 units as compared to 4,731 units in October last year, the filing added.
According to Moneycontrol SWOT Analysis powered by Trendlyne, the company has been inefficient in use of capital to generate profits - RoCE declining in the last 2 years. Its recent results points to declining operating profit margin and net profits (YoY).
However, Moneycontrol technical rating is very bullish with moving averages and technical indicators being bullish.