Ashok Leyland shares plunge 7 pc in early trade after Q2 results

Shares of Ashok Leyland on Monday plunged over 7 percent in early trade after the company reported a 92.61 percent decline in net profit for the second quarter ended September 30. The scrip tanked 7 percent to Rs 71.20 on the BSE.

At the NSE, it dropped 7.25 percent to Rs 71. However, later the scrip bounced back and was trading marginally higher by 0.39 percent at Rs 76.90 on the BSE during the late morning trade on the BSE.

Ashok Leyland on Friday reported a 92.61 percent decline in net profit at Rs 39 crore for the second quarter ended September 30. The company had clocked a profit of Rs 528 crore in July-September, 2018-19.

Revenue stood at Rs 3,929 crore for the second quarter, down 48 percent as compared with Rs 7,621 crore in the year-ago period, Ashok Leyland said in a regulatory filing. "The industry has witnessed a 53 percent 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 amortization) of 5.8 percent," Ashok Leyland Chairman Dheeraj G Hinduja said.

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