Ashok Leyland to write down Rs. 157 cr in John Deere JV

The write-down would not have an impact on the bottomline in a major way, as the company could offset it with around Rs. 151.82 crore profit on sale of long-term investments in IndusInd Bank, CFO Gopal Mahadevan told reporters in Chennai on Thursday.

Ashok Leyland Ltd. has decided to write down Rs. 157 crore in its accounts as diminution in the value of investments made in the earthmoving equipment joint venture with John Deere.

The write-down would not have an impact on the bottomline in a major way, as the company could offset it with around Rs. 151.82 crore profit on sale of long-term investments in IndusInd Bank, CFO Gopal Mahadevan told reporters in Chennai on Thursday.

It may be recalled that earlier, Ashok Leyland had decided to write down around INR 224 crore invested in its joint venture with Nissan. 

Ashok Leyland John Deere Construction Equipment Company, formed to make backhoe loaders, has not been doing well. 

Ashok Leyland holds 50% in the JV, which reported a loss of Rs. 29.55 crore in FY2014-15.