Ashok Leyland reported almost 274% growth on-year in its net profit for the quarter ended March 31, 2022 at ₹901.37 crore on back of substantial rise in exceptional items. The Hinduja Group-owned commercial vehicle manufacturer had posted a net profit of ₹241.17 crore in the corresponding quarter of the previous fiscal.
The Hinduja Group flagship registered a revenue of ₹8,744 crore in the quarter under review against ₹7,000 crore in the same period last year, marking a growth of 25%. Profit before tax for the quarter was ₹999 crore, compared with ₹314 crore a year ago.
Operating profit improved during the March quarter as EBITDA grew to 8.9% from 7.6% last year.
The company reported exceptional items at ₹470 crore during the quarter, against merely ₹37 crore in the year-ago period.
Ashok Leyland saw its truck market share improve to 30.6% in Q4 FY22, compared with 28.9% in Q4 FY21. This is the highest market share seen in the last 11 quarters, the company says in an exchange filing.
For the full fiscal 2022, net profit stood at ₹542 crore, compared with a loss of ₹314 crore in the previous fiscal. Profit before tax for the entire fiscal was ₹528 crore as against a loss before tax of ₹412 crore last year.
Revenue for the full year reached ₹21,688 crore against ₹15,301 crore over the same period last year. Full year EBITDA also improved to 4.6% compared with 3.5 % last year. The company generated cash to the tune of ₹1,888 crore during the fiscal, while debt net of cash for FY22 was ₹720 crore.
“This performance was backed by the successful AVTR range - India's first modular truck platform and the launch of the CNG range in LCV'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,” Ashok Leyland says in the filing.
The company recorded a rise in MHCV and LCV exports at 4,173 units during the March quarter despite the pandemic restriction, marking a growth of 32% over 3,164 units in Q4 last year. On a full year basis the export volumes stood at 11,014 units, higher 38% from 8,001 units seen last year.
“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 and mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand. The performance of our 856 products has been very good and the introduction of CNG products has helped us regain our market share,” says Dheeraj Hinduja, executive chairman, Ashok Leyland.
“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 semiconductors and hope that both will ease,” he further adds.
The board of directors of the company has also recommended a dividend of ₹1 per equity share, subject to shareholders’ approval. The said dividend, if approved at the forthcoming annual general meeting (AGM) on July 29, shall be paid on or before August 27.