Ashok Leyland reports robust Q2; CEO plans exit

Hinduja Group-led Ashok Leyland reported its second-quarter numbers for FY19 on Tuesday. 

The company’s revenue stood at Rs. 7,608 crore in Q2FY19 as against Rs. 6,076 crore in the corresponding quarter of last year, representing 25.2 per cent growth. 

EBITDA for the quarter was at Rs. 806 crore, up by almost 32 per cent yoy. The EBITDA margin for the quarter stood at ~10.6 per cent as against 10.1 per cent in Q2FY18. 

Notably, the company recorded 37 per cent yoy growth in net profit to reach Rs. 830 crore. 

However, the company informed the bourses that its CEO and Managing Director Vinod Dasari has resigned from his post to pursue personal interest. He will serve the company till March 31, 2019. Further, Dheeraj Hinduja, the company's Chairman will take over as Executive Chairman with immediate effect. 

Besides, the company is planning to roll out its first set of Electric Vehicles (EVs) by January 2019. The electric vehicle plant was ready in Chennai and the first batch of vehicles would run in Gujarat. 

Despite reporting a strong set of numbers, the stock of Ashok Leyland reacted negatively and tumbled almost 9 per cent to touch an intraday low of Rs. 108.5 per share. At 11:04 hours, the stock was trading at Rs. 109 apiece, down by almost 8.4 per cent on Wednesday.