InvestorQ : How do you see the latest loss reported by Ashok Leyland in the Sep-20 quarter?
Arya Nanda made post

How do you see the latest loss reported by Ashok Leyland in the Sep-20 quarter?

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Anjana Aiyar answered.
3 weeks ago
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Ashok Leyland of the Hinduja Group reported consolidated net loss of Rs.96.23 crore in the Sep-20 quarter. This clearly contrasts with the consolidated net profit of Rs.70 crore that the company had reported in the Sep-19 quarter.

For the Sep-20 quarter, the revenues of Ashok Leyland were down nearly 22% at Rs.3852 crore. The key reason was the challenge in the market due to COVID-19 pandemic and the concomitant lockdown creating a demand gap in the market. However, the company confirmed that the sequential improvement had been substantial.

Ashok Leyland had a major challenge with respect to the MCV and the HCV segment where it predominates. This segment is largely linked to the revival in the capital cycle and with most industries yet to operate at full capacity, any fresh activity is limited in this space.

However, there is good news on the sequential front across auto stocks. While agricultural segment has been seeing robust demand, it has also spilled over to the other auto sectors. The numbers on the festival sales are yet to come out fully and that is also expected to be a major boost for Ashok Leyland.

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