Ashok Leyland’s Net increases 124% in Q1
Chennai, July 29, 2022: Ashok Leyland, the Indian flagship of the Hinduja Group, reported a 145 % increase in YoY quarter revenues in Q1 FY’23. Revenues for the quarter stood at Rs. 7223 crores as against Rs. 2951 Cr. in Q1 FY’22. In the same period Ashok Leyland’s domestic MHCV volume grew at 189 % and market share grew from 27.0 % to 30.0 %. Truck market share was at 31.1% for Q1FY23 as against 26.2% last year.
The Company’s domestic LCV volume in Q1 FY’23 was 14384 nos which is 66 % higher than Q1 of last year (8,690 nos.) Export volume (MHCV & LCV) for Q1 FY’23 at 2527 nos. is higher than same period last year by 76% (1437 nos.).
EBITDA for Q1 FY23 was at Rs. 320 Cr as against a loss of Rs. 140 Cr in the previous year. The company reported a net profit of Rs. 68 Cr. for Q1 FY’23, vis-a-vis a Net Loss of Rs.282 Cr in Q1 FY’22. Net Debt to Equity was at 0.3 times compared to 0.6 times in Q1 last year.
The Company continued to see strong demand for the AVTR range – India’s first Modular Truck Platform - and this demand is expected to further improve consequent to anticipated growth in the Total Industry Volume. 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. Last-mile connectivity propelled by e-commerce is likely to maintain the demand for SCV trucks. Other businesses of the Company like Power Solutions and Aftermarket continue to contribute strongly to the bottom line of the Company. The volume of LCV could have been better but for the inadequate availability of ECUs, which is now gradually improving.
Mr. Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said “The industry has seen strong volume growth in Q1 FY’23, and we expect this trend to continue going forward. The team is focused on market performance while reining in costs this quarter. Our digital-first approach is helping Ashok Leyland customers increase their business efficiency and we are continuing to expand our offerings. We are pleased that we have continued to grow our market share. With our robust LHD portfolio we are intensifying our international expansion strategy.
Through our Electric Vehicle subsidiary, Switch Mobility, we are taking strategic steps to move towards net zero carbon mobility. The EV market is expanding fast and we are ready for participating in this growth. We are committed to achieve our sustainability agenda with a clear road map.”
Mr. Gopal Mahadevan, Director & CFO, Ashok Leyland, added, “With expansion in revenues and efficient cost management we have seen our bottom line improving. The softening of commodity prices, in particular for steel, should impact our margins positively.
The focus is on Customer, Cost and Cash.”