After reporting net loss in its Q1FY14, Ashok Leyland has slashed its total investments by almost one-fourth to Rs 400 crore this year to protect costs. The company also resorted to lay off its temporary workforce last quarter that resulted in 1,300 job cuts in addition to a 5% salary cut for the executive cadre, which resulted in savings of Rs 10 crore.
Meanwhile, the company has reduced working days and labours in June to align demand. The reduction in labours will help to reduce cost.
The company reported net loss of Rs 141.75 crore for the quarter as compared to net profit of Rs 66.94 crore for the quarter ended June 30, 2012. Its total Income decreased by 21.83% to Rs 2376.07 crore for the quarter ended June 30, 2013 from Rs 3039.76 crore for the corresponding quarter of the previous year.
