Ashok Leyland skids on VRS

Ashok Leyland has been among the top five losers on the BSE since the opening bell. The stock opened itself 8% lower at Rs.124.10 but recouped from there and is now trading at Rs.128 levels.

The market has reacted negatively to the company’s Q3FY21 earnings wherein, due to the Rs.85 crore VRS is doled out, it reported a net loss for the quarter at Rs.19 crore v/s net profit of Rs.28 crore (YoY). This loss is much lower than the Rs.147 crore loss it reported in Q2.

Its revenue from operations rose 20% (YoY) and up 70% (QoQ) to Rs.4813 crore while EBITDA too showed a smart 16% rise at Rs.288 crore.

The company has also brought down net debt to Rs 2,880 crore in Q3 from Rs 3,076 crore in Q2FY21.