Ashok Leyland shares fall 8% after posting loss of Rs 19 crore in Q3

The share price of commercial vehicle manufacturer Ashok Leyland plunged over 8 percent in early trade on Friday after the company posted a net loss of Rs 19.38 crore in the third quarter of fiscal 2021. The loss included a one- time VRS cost of Rs 85 crore.

The company had reported a net profit of Rs 27.75 crore in the year-ago period.

Ashok Leyland’s revenue from operations during Q3FY21 rose 19.87 percent to Rs 4,813.51 crore from Rs 4,015.65 crore, YoY. EBITDA increased 16.31 percent to Rs 287.85 crore from Rs 247.48 crore in the year-ago quarter.

The company's domestic LCV volumes for Q3FY21 were at 15,991 units, sequentially higher by about 46 percent over Q2FY21 and also higher than Q3FY20 by 27 percent.

Exports volumes for Q3 rose 24 percent to 2,941 units from 2371 units, YoY.

The company has also brought down net debt to Rs 2,880 crore in Q3 from Rs 3,076 crore in Q2FY21, further strengthening the balance sheet of the company, Ashok Leyland said in a regulatory filing.

The analysts are of the view that the commercial vehicle (CV) segment will perform well as the economy recovers going ahead. Hence, any dip in the stock price of CV manufacturer Ashok Leyland can be used as a buying opportunity

Speaking to CNBC-TV18, Gurmeet Chadha, Co-Founder and CEO at Complete Circle Consultants said, “Any dips on Ashok Leyland are welcome.”

At 10:40 am, the shares of Ashok Leyland were trading 3.78 percent lower at Rs 129.90 apiece on the BSE as compared to a 0.27 percent gain on the benchmark Sensex.