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Ashok Leyland’s Net Profit up 340% to Rs.199 Cr
Q2 market share jumps to 32%
Chennai, November 11, 2022: Ashok Leyland, the Indian flagship of the Hinduja Group reported a Profit After Tax (PAT) of Rs.199 Cr for the quarter vis a vis a loss of Rs. 83 Cr in the same period last year and achieved a market share of 32 % in Q2 FY23. The revenues for the quarter stood at Rs. 8266 crores vis a vis Rs. 4458 crores in Q2 FY’22. Ashok Leyland’s domestic MHCV volume at 25475 nos. grew by 113% over the same period last year (11988 nos.), which is more than double the industry growth. This helped Ashok Leyland achieve market share gains of 9.6 % in the quarter.
Ashok Leyland’s domestic LCV volumes for Q2 FY’23 at 17040 nos. is higher than Q2 FY’22 by 28% (13328 nos.). Export volumes (MHCV & LCV) for Q2 FY’23 at 2780 nos. is higher than Q2 FY’22 by 25 % (2227 nos.).
The company reported an EBITDA of Rs. 537 Cr. (6.5%) in Q2 Fy’23 vis a vis Rs. 135 Cr. (3.0%) for Q2 FY’22.
Debt was at Rs. 2677 Cr in Q2 FY ’23. Debt Equity was at 0.37 times in Q2 FY ’23 as compared to 0.48 times in Q2 FY ‘22.
The company saw healthy demand for the AVTR range – India’s first modular truck platform, and this demand is expected to further improve, mirroring the expected increase in economic activity. In the LCV segment, the Bada Dost has been well accepted by the customers and the company is ramping up production in line with market demand. Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes. Other businesses like After-market and Power Solutions Business continue to contribute to the top line of the Company.
Mr. Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said “Despite global recessionary trends, the Indian commercial vehicle market continues to grow well, the industry has seen strong volumes in Q2 FY’23 over the same period last year. We see the demand continuing in all segments of trucks and passenger vehicles and we remain confident and optimistic about the future. Our robust market share growth exemplifies the technological leadership of Ashok Leyland. We continue to build competitive products and organisational capabilities for future products using alternate fuels.”
Mr. Gopal Mahadevan, Director & CFO, Ashok Leyland, added, “While we will pursue growth, we want to do it profitably and sustainably, the team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, Defence and digital customer solutions which have contributed increasingly to our revenue.”