Ashok Leyland share fell nearly 4% today after the firm said it has scaled down production at all its plants due to the second COVID-19 wave and dip in demand in the automobile sector. The auto share fell 3.86% intra day to Rs 108.35, down 3.86% on BSE. The stock has lost 5.13% in the last 3 days.
The large cap stock opened with a loss of 2.04% at Rs 110.40 on BSE.
Ashok Leyland share trades higher than 200 day moving averages but lower than 5 day, 20 day, 50 day and 100 day moving averages.
Ashok Leyland stock has risen 111.84% in one year and gained 17% since the beginning of this year.
Market cap of the firm fell to Rs 32,848 crore on BSE.
Later, Ashok Leyland share closed 0.71% lower at Rs 111.90 on BSE.
"Accordingly, the operations of our plants have been scaled down and are expected to work for 7-15 days in May. We will continue to respond to the COVID-19 situation in the country as it unfolds," Ashok Leyland said in a BSE filing.
While the demand outlook is expected to take a hit, Ashok Leyland will continue to manufacture vehicles for the Defence Forces and will ensure smooth supply of essential parts and aggregates needed for manufacturing of commercial vehicles and also continue to enable the movement of essential goods and services.
The decision has been taken keeping the wellbeing of their employees, their employees' families, customers, dealers and suppliers in mind.
"With health and safety first as the focus, our emergency response team, a high-level task force responsible for managing COVID related protocols has revisited all the standard operating procedures and is ensuring the implementation of the same," Ashok Leyland noted.
Meanwhile, the Hinduja Group-backed commercial vehicle maker reported sales of 8,340 units (domestic plus exports) in April.
Of these, 7,961 units were sold in the domestic market.
Sequentially, total sales slumped 51.59% to 8,340 units in April 2021 from 17,231 units recorded in March 2021.