Ashok Leyland, the Hinduja Group flagship, has registered a 12% increase in turnover at Rs.6,303 Crores during the first half of FY 2012-13 as against Rs.5,628 Crores for the corresponding period in the last fiscal.
This was the result of a good sales performance that saw the Company gain market share in the Medium and Heavy Commercial Vehicle (M&HCV) segment despite a fall in Total Industry Volume (TIV) by 13%. The sales turnover was also bolstered by the continued successful run of ‘Dost’, which is the No. 2 brand in its 2 – 3.5Tonne category with an all-India market share of close to 19%.
EBITDA was up 2.5% in H1 FY13 at Rs.612 Crores (Rs.597 Crores). Interest Costs in H1 FY13 at Rs.187 Crores were higher by Rs.65 Crores primarily due to higher working capital requirements. Depreciation went up by Rs.17 Crores to Rs.188 Crores. PAT was Rs.210 Crores as against Rs. 240 Crores in previous year’s first half.
For Quarter ended September 30th, 2012, the Company registered a 6% growth in turnover at Rs. 3,296 Crores as against Rs. 3,115 Crores for the corresponding quarter of previous fiscal.
The Company improved its EBITDA, up by 4%, to Rs.358 Crores (Rs.345 Crores). Interest Costs were higher at Rs 104 Crores (Rs.66 Crores) due to higher working capital needs. PAT was at Rs.143 Crores as against Rs.154 Crores for the corresponding quarter in the previous fiscal.
“To have gained market share in a falling market is indeed reflective of a good sales performance,” said Mr. Vinod K. Dasari, Managing Director, Ashok Leyland. “This can be attributed to enhanced performance from our products, resulting in better profitability for our customers, robust network expansion program, and aggressive brand building efforts. Exports struggled with drop in our primary markets of SAARC but made up to a large extent with entry into many new markets across the world. Our LCV product, ‘Dost’, continued its strong run, becoming the number 1 brand in all the markets where it was launched. Engines and Spare Parts business enhanced their performance substantially” he added.
Speaking about the quarter ahead, he said, “The market has been extremely volatile but we are hopeful that there would be new initiatives in the areas of infrastructure development, mining and construction that would improve the macro-economic outlook and buoy up sentiments. For Ashok Leyland, in particular, the coming few months are very critical as we have a slew of new product launches on the anvil, and need to continue the pace of brand and network building across the country, as well as push into new markets across the world.”