Ashok Leyland sees demand returning; steel prices not passed to customers

Ashok Leyland reported earnings below estimates this quarter. Margins slipped 130 basis points. Speaking CNBC-TV18 Gopal Mahadevan the CFO and Whole-Time Director of the Company talked about the costs pressures the company has been facing and his expectations going forward.

Mahadevan said, “As far as the cost pressure are concerned it is not just the company, it is the industry that is facing it, because of the high steel prices that have been kind of recording quarter-on-quarter. We have not been able to pass on those steel price increases to the customers understandably so because we are coming out of a COVID.”

He added, “As we move forward, if steel prices by chance were to increase further than we would need to raise prices further, but the most important thing is we do see demand coming back that would actually improve pricing further.”