InvestorQ : Why did Ashok Leyland see such a sharp fall in profits and sales in the Mar-20 quarter?
ishika Banerjee made post

Why did Ashok Leyland see such a sharp fall in profits and sales in the Mar-20 quarter?

Answer
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Niti Shenoi answered.
3 months ago


Ashok Leyland saw a sharp fall in top line and bottom line during the Mar-20 quarter. It saw a sharp fall in overall sales revenues in the Mar-20 quarter by almost 60% to Rs.3838 crore. Ashok Leyland also reported a net loss of Rs.57 crore in the Mar-20 quarter compared to a profit of Rs.653 crore in the corresponding Mar-19 quarter.

The biggest challenge for ALL was from the 42% fall in total volumes during the quarter on account of weak demand as well as the lockdown in the latter half of March. However, for the full financial year 2019-20, Ashok Leyland managed to report a net profit of Rs.240 crore albeit much lower than the Rs.1983 crore in the previous year.