Ashok Leyland bags order for 1400 ICVs from Procure Box

ICVs, or intermediate commercial vehicles, will be utilized for the fuel distribution business across all districts of India.

Sep 17, 2020 11:09 IST capital market

Ashok Leyland on Thursday said it received a large order from a logistics start-up company, Procure Box. The start-up has placed an order of 1400 intermediate commercial vehicles for its fuel distribution business across 750 districts, in the country. The order encompasses the Ashok Leyland product - the Ecomet - and will be executed in the next 5-6 months.

Anuj Kathuria, chief operating officer, Ashok Leyland, said, With this order, our orderbook for ICVs has enhanced significantly.

Ashok Leylands total auto sales have been exhibiting continued sequential improvement since May 2020. The commercial vehicles maker total sales have risen from 1,277 units in May 2020 to 6,325 units in August 2020.

However, when to compared to their corresponding periods last year, the companys auto sales have significant catch up to do. Ashok Leylands August 2020 sales were still lower by 31% as compared to 9,230 units sold in the same period last year.

Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

The company posted a consolidated net loss of Rs 388.82 crore in Q1 June 2020 compared with net profit of Rs 274.96 crore reported in Q1 June 2019. Net sales for quarter ending June 2020 stood at Rs 1,480.16 crore, tumbling 77.3% from Rs 6,514.73 crore in the same period last year.

The scrip fell 1.40% to Rs 77.75 on the BSE. It traded in the range of 76.85 and 79.20 so far during the day.

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