Ashok Leyland skids

Despite a poor show for Q4FY20, the stock price opened in the green at Rs.54.75 from its previous close of Rs.53.55. It went up further to Rs.55.50 but there it slipped; it is now in the red at Rs.53 levels with more sellers than buyers on the counter.

It was widely expected that the company would report a loss for the quarter and it did. Consolidated net loss came in at Rs.58 crore v/s net profit of Rs.653 crore (YoY). Its revenue from operations fell 48% at Rs.5088 crore.

In its standalone performance, the company has booked exceptional items of Rs.69 crore, which include an impairment loss in the value of undisclosed equity investment, obligations relating to discontinued products of light commercial vehicles or LCV division among others.

Surely Q1FY21 will be worse as it had zero sales in April and May, it had reported a 89% drop in total CV sales.