Ashok Leyland shares tumbled 7 percent on Monday after the automaker reported a massive 92.6 percent year-on-year decline in its net profit at Rs 38.9 crore for the second quarter. It had posted a net profit of Rs 527.7 crore in the year-ago period.

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The stock fell as much as 7 percent to Rs 71.20 per share on the BSE. At 9:31 am, the stock was trading 5 percent lower at Rs 72.80 as compared to 0.06 percent or 23 points rise in BSE Sensex at 40,347.

The company posted a one-time loss of Rs 64.8 crore in Q2FY20 against a loss of Rs 19.3 crore in the corresponding period last fiscal, due to expenses on voluntary retirement scheme and provision for obligation relating to a subsidiary.

Revenue from operations also fell 48.4 percent YoY to Rs 3,929.5 crore, while volumes dropped 44 percent YoY in Q2 to 28,938 units. Medium and heavy commercial vehicle volumes declined 56 percent and light commercial vehicle sales dipped 11 percent YoY.

"The industry has witnessed a 53 percent decline in volumes. Volumes for Ashok Leyland also witnessed a significant drop in this quarter, despite this, we have been able to achieve an Ebitda (earnings before interest, tax, depreciation, and amortisation) of 5.8 percent," Ashok Leyland chairman Dheeraj G Hinduja said after Q2 earnings.

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