Ashok Leyland skids & hits a low

Ashok Leyland hit a new 52-week low today at Rs.60.85 and continues to remain among the top five losers on the BSE.

The fell after another month of decline in sales was reported yesterday. For July, it reported a 28% decline in total sales at 10,927 vehicles v/s 15,199 units in the same month last year.

Total domestic sales were at 10,101 units last month, down 29% (YoY). Medium and heavy commercial vehicles (M&HCV) sales in domestic market were down 41% at 6,018 units.

Light commercial vehicle (LCV) sales in July were flat at 4,083 units v/s 4,053 units.

That apart, the company has said that it plans to go in for cost cutting exercises across all verticals to maintain its margins. Expecting flattish or degrowth in line with the industry’s projections, the company hopes to save at least Rs 500 crore by cutting costs. Its inventory, against the usual 15-20 days is now hovering around one month.