"Although the entire commercial vehicle industry has had a very tough Quarter 1, we, at Ashok Leyland, have remained focused on being future-ready by staying committed to our product development, network expansion and cost control programmes," said Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, putting perspective to the Quarter 1 results of the Hinduja Group flagship. "What we are experiencing is one of the harshest and steepest of downturns and while we are combating it, the situation also affords us an opportunity to streamline our processes towards becoming a leaner and far more customer-oriented organization."

The Company registered a turnover at Rs. 2,363.81 crores for the quarter ended June 30, 2013 as against Rs 3,026.89 crores of the corresponding quarter of the previous fiscal. However, the various cost control measures have helped the Company remain positive on the EBIDTA front.

Sale of vehicles for the quarter stood at 14,900 numbers (20,239 nos.) with domestic volume at 12,960 nos. (17,335 nos.) reflecting a drop of 25.2% over the previous corresponding quarter. The sale of the Company's successful Small Commercial Vehicle 'Dost' was 6,824 nos. (7,248 nos.). Volumes from international operations stood at 1,940 nos. (2,904 nos.).

The Company's Loss from Operations before Other Income, Finance Costs and Exceptional Items stood at Rs. 71.92 crores (Profit of Rs. 151.45 crores). Apart from a drop in volumes, heavier discounting of vehicles to compete in the marketplace further eroded profits.

Ashok Leyland suffered a Net Loss at Rs. 141.75 crores as against a Net Profit of Rs. 66.94 crores for the corresponding quarter in the previous year.

To effectively address the tough situation that is expected to last for this fiscal, the Company has initiated concerted efforts to reduce its breakeven point. Manufacturing footprint is being rationalized to improve asset utilization. Focused efforts to reduce the debt have been accelerated and steps have been taken to reduce operational expenses.

Speaking about the remainder of the financial year, Mr Dasari said, "Although the market is still very volatile there are some green shoots showing. However, while we cannot control the market, we are focused on preparing ourselves for a revival which is bound to come hopefully sooner rather than later. We are seeking to capitalize on our gains in the ICV space with the launch of the BOSS vehicle which should win us market share. This will be followed by the introduction of the Neptune engine on select Multi-Axle vehicle models and the N-Truck with a revolutionary, new, world-class cab. The JnNURM 2 should prove to be an ideal launch pad for the Janbus. To support all this, we will continue to be aggressive in our network expansion and all these are going to help us to be future-ready," he concluded.


Q1_Results_2013_14.pdf

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