Chennai-based commercial vehicle manufacturer and Hinduja Group owned company, Ashok Leyland announced financial results for the third quarter of current financial year.

The company, under the impact of lower sales due to economic slowdown, posted decline of 82.64 per cent in net profit for the Q3 ended December, 2008. It stood at just Rs 21.09 crore in the reporting quarter as compared to Rs 121.49 crore during the same quarter last year.

The income from operations decreased to Rs 1,000.84 crore, 44 per cent less than income of last year, clearly due to low demand in the market following world financial crisis. The company employed various cost cutting measures, to reduce expenses and ensure adequate growth, leading to register 43 per cent decline in expenditures to Rs 953 crore as compared to Rs 1,675 crore in the same period last year.

The firm reported steep decline in sales due to low demand in automobile industry. It produced 960 units during the quarter as compared to 7,110 units manufactured in December last year. However, 100 per cent export growth rate in the heavy vehicle segment, during the period, helped it to cover some losses, originated due to decline in sales in domestic market.