Ashok Leyland share price fell in early trade today after the firm reported 93% fall in net profit for the quarter ended September 2019. Ashok Leyland stock lost 7.04 % to Rs 71.20 compared to the previous close of Rs 76.60.
Ashok Leyland stock opened 6% lower at Rs 72. However, the stock attempted recovery and was trading 0.46% higher at Rs 76.95 at 11:02 am. The large cap stock has lost 34.63% in one year and fallen 24.52% since the beginning of this year.
The auto firm clocked a 92.61 per cent decline in its net profit to Rs 39 crore for the second quarter ended September 30 against net profit of Rs 528 crore in the July-September period of 2018-19. Revenue fell 48 per cent to Rs 3,929 crore in Q2 compared with Rs 7,621 crore in the year-ago period, Ashok Leyland said.
"The industry has witnessed a 53 per cent decline in volumes. Volumes for Ashok Leyland also witnessed a significant drop in this quarter, despite this, we have been able to achieve an Ebitda (earnings before interest, tax, depreciation and amortisation) of 5.8 per cent," Ashok Leyland Chairman Dheeraj G Hinduja said.
Some of the cost management programmes initiated earlier this year have yielded benefits and are reflected in the results, he added.