Despite robust second-quarter results, shares of commercial-vehicle manufacturer Ashok Leyland slipped by more than 9% on Wednesday after the company announced the resignation of its chief executive officer.
Ashok Leyland shares were trading at 108.30 rupees (down 8.99%) at 12:12pm after touching an intra-day low of 107.55 on the Bombay Stock Exchange on Wednesday.
The company’s managing director and CEO Vinod K Dasari has quit after a stint of 14 years. He will continue to work in the current position until March 31, 2019, to ensure a smooth transition, Business Standard reports.
Earlier the country’s second-largest heavy-truck maker reported a 37% year-on-year jump in net profits at 4.60 billion rupees (US$63.65 million) to the end of the September quarter (the second quarter in fiscal year 2019), on the back of 25% year-on-year growth in revenue at 76.08 billion rupees.
For the first half of this financial year net profit increased by 86% to 8.30 billion rupees compared with 4.46 billion rupees in the previous year, while revenue increased by 34%.
Dasari applauded the company for posting a “record financial performance” despite a challenging market and an aggressive competitive environment.
Dasari was instrumental in Ashok Leyland’s entry to the heavy-payload 37-ton segment and also gave greater impetus to the fast-growing light-commercial-vehicle segment.