Ashok Leyland reported a net loss of Rs 167 crore for the December quarter—the third successive quarter of losses—as the ongoing economic slowdown continued to hurt demand for commercial vehicles.
With this, the company has now reported a net loss of Rs 334 crore on sales of Rs 6715 crore for the 9-month period till December. In a conference call with analysts, the management said the industry may have bottomed out and things were expected to start looking up from this quarter.
The company’s market share in the bus segment fell to 34.9 percent from 43.4 percent, and the management attributed to it some key clients deferring their orders. In the meantime, the management is trying to strengthen the balance sheet and improve profitability.
The company generated Rs 230 crore of cash flow in the December quarter and reduced Rs 485 crore of working capital. Since August, debt has reduced by Rs 750 crore and working capital by Rs 800 crore. Also, number of receivable days have dropped by 45-50 percent, and so have inventory levels from 7,500 to 4,100 during the quarter. Read more...
With this, the company has now reported a net loss of Rs 334 crore on sales of Rs 6715 crore for the 9-month period till December. In a conference call with analysts, the management said the industry may have bottomed out and things were expected to start looking up from this quarter.
The company’s market share in the bus segment fell to 34.9 percent from 43.4 percent, and the management attributed to it some key clients deferring their orders. In the meantime, the management is trying to strengthen the balance sheet and improve profitability.
The company generated Rs 230 crore of cash flow in the December quarter and reduced Rs 485 crore of working capital. Since August, debt has reduced by Rs 750 crore and working capital by Rs 800 crore. Also, number of receivable days have dropped by 45-50 percent, and so have inventory levels from 7,500 to 4,100 during the quarter. Read more...
Source: Business News India
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