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Ashok Leyland turns to Profit

Ashok Leyland Limited, flagship of the Hinduja Group, reported a revenue of Rs. 8744 Cr in Q4 FY ’22 as against Rs. 7,000 Cr for the same period last year

Ashok Leyland Limited, flagship of the Hinduja Group, reported a revenue of Rs. 8744 Cr in Q4 FY ’22 as against Rs. 7,000 Cr for the same period last year; Revenue grew by 25% year on year. PBT for the quarter was at Rs. 999 Cr as against Rs. 314 Cr for the same period last year. PAT was at Rs. 901 Cr as against a Rs. 241 Cr in Q4 last year. Q4 EBITDA was at 8.9% as against 7.6% last year.

AL’s truck market share for Q4 FY’22 has improved to 30.6% vis-a-vis 28.9 % in Q4 FY’21, this is the highest market share seen in the last 11 quarters.

Revenue for full year was at Rs. 21688 Cr as against Rs. 15,301 Cr over the same period last year. PBT was Rs. 528 Cr as against a Loss before tax of Rs. 412 Cr last year. PAT was at Rs.542 Cr as against a Loss after tax of Rs. 314 Cr last year. Full year EBITDA was at 4.6% as against 3.5 % last year. Cash generated during the year was Rs. 1888 Cr; Debt net of cash is at Rs. 720 Cr (Gearing 0.1 time).

This performance was backed by the successful AVTR range – India’s first modular truck platform and the launch of the CNG range in ICV’s. The AVTR platform gives customers a choice to customize their truck as per their unique requirements. The platform has been delivering best-in-class total cost of ownership across segments which has been widely appreciated by customers.

Despite the pandemic situation, Q4 MHCV & LCV exports at 4173 nos. have grown by 32% over Q4 last year (3,164 nos.). On a full year basis our export volumes at 11014 nos. is higher than last year (8,001 nos.) by 38%.

Mr. Dheeraj Hinduja, Executive Chairman, Ashok Leyland Limited said, “We have seen recovery in Q4 FY’22 and the overall performance has been very good. The CV industry is on a recovery owing to the improvement in the macroeconomic environment and healthy demand from the end-user industries. The MHCV segment is leading the recovery riding on the back of growth in core sectors such as construction & mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand. The performance of our BS6 products have been very good and the introduction of CNG products has helped us regain our market share.

LCV volumes driven by increased demand for last mile connectivity, especially from the e-commerce segment is expected to grow further. The focus on Exports, Defence, Power Solutions and Parts businesses will ensure a balanced growth, even as we expand the reach and the products of our core MHCV business.  We are keenly following the commodity prices, and the situation on the supply of semi-conductors and hope that both will ease.

We are very excited with the prospects of Switch and its future growth prospects in electric vehicles.  This complements well with the further developments that Ashok Leyland is making across a spectrum of alternate fuels.

We are confident that we will deliver sustainable profitable growth going forward.

Mr. Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland Limited said “We believe that the Q4 performance posted a good recovery. Our truck market shares have been growing steadily quarter on quarter in MHCV and in LCV, volumes have picked up. All other businesses including Aftermarket and International Operations have done exceptionally well. The higher volumes and our cost management initiatives have helped us improve our bottom line. We have generated close to INR 2000 Cr in cash this quarter owing to better profits and improved working capital, we will continue to focus on driving operational efficiency.

Ashok Leyland stays committed to Sustainability, and to bring a singular focus to this initiative, a separate ESG committee of the Board, headed by an independent director has been carved out. The role of this Board Committee will be to provide appropriate oversight and guidance in the Company’s journey on organization-wide ESG initiatives, priorities, and leading ESG practices.

The Directors have recommended a 100% dividend of Re. 1/- per equity share of Re. 1 each for the financial year ended 31st March 2022.

SOURCE: Ashok Leyland

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