The 9% drop in Ashok Leyland Ltd’s June quarter truck sales may have been partly due to BS-IV transition and goods and services tax (GST) implementation issues. This was also very untimely in that the regulatory changes came amid rising costs that accelerated at a faster pace than sales growth. After a smooth uphill ride for many quarters, Ashok Leyland’s market share has risen from 27% a couple of years ago to 35% now. As a result, Ashok Leyland’s operating profit of Rs306 crore was a substantial 37% lower than the year-ago period. Net profit at Rs111 crore plunged to a little less than half that posted in the year-ago period.

Source: Mint July 24, 2017 02:26 UTC