Hinduja Group flagship company Ashok Leyland Thursday reported 21.44 per cent decline in its standalone net profit at Rs 381 crore for the third quarter ended December 31, 2018, impacted by pricing pressure and higher input costs.
The company had posted a net profit of Rs 485 crore during the October-December period of 2017-18.
Revenues also declined to Rs 6,325 crore during the third quarter, as against Rs 7,191 crore in the same period of previous fiscal, Ashok Leyland said in a regulatory filing.
"Our financial performance has been satisfying given the twin challenges of pricing pressure and higher input costs as we continue to post double digit EBITDA margins," Ashok Leyland CFO Gopal Mahadevan said.
Total industry volume for the quarter was lower by 7 per cent due to high base last year, he added.
Ashok Leyland Managing Director Vinod K Dasari said the company has achieved BS6 compliance across its entire range of engines on test beds.
"Coupled with the modularity of vehicles we are planning from 2020, it presents exciting opportunities for differentiating Ashok Leyland's offerings to the customers," he added.
Dasari said the company expects greater spending to resume in the defence sector post elections.
"Lastly, we are excited about the Light Commercial Vehicles (LCV) business. Now that the LCV business is merged with Ashok Leyland, we will offer the entire range of LCVs from 2020," he added.
This will help complete the range and the company will then be able to offer a full range of CVs which are also Left-Hand Drive (LHD) compliant, giving a boost to exports, Dasari said.
Ashok Leyland shares ended 7.03 per cent up at Rs 84.50 apiece on the BSE.