A drop in truck and bus sales, raw material cost pressures and higher employee costs hit the first-quarter profit at Hinduja-run Ashok Leyland, which fell 30% year-on-year to Rs 86.3 crore against Rs 122.6 crore in the year-ago period.
Net revenue during the quarter rose by 6% to Rs 2,495 crore.
Ashok Leyland's vehicle sales during the April-June period dropped 10% to 19,277 units. "The drop in domestic volume, primarily in the company's stronghold South India, resulted in a loss of overall market share," the company said in a statement.
The company's employee cost also went up from Rs 202.5 crore to Rs 249.7 crore.
"After the robust growth of 2010-11, the first quarter of this fiscal has seen a significant moderation," said Vinod K Dasari, managing director, Ashok Leyland.