Ashok Leyland’s Revenues increase 3.5 times to Rs. 2,951 Cr in Q1.

Ashok Leyland’s Revenues increase 3.5 times to Rs. 2,951 Cr in Q1.

Ashok Leyland, flagship of the Hinduja Group reported a 353% increase in YoY quarter revenues in Q1 FY’22. The revenues for the quarter stood at Rs. 2,951 crores as against Rs. 651 Cr. in Q1 FY’21. Ashok Leyland’s domestic MHCV volume grew at 1,041% which is close to twice the industry growth of 562% over the same period last year.

Ashok Leyland’s domestic LCV volumes for Q1 FY’22 at 8,690 nos. is higher than Q1 FY’21 by 224% (2,686 nos.) Export volumes (MHCV & LCV) for Q1 FY’22 at 1,437 nos. is higher than Q1 FY’21 by 254 % (405 nos.).

The company reported a net loss of Rs. 282 Cr. for Q1 FY’22, vis a vis a Net loss of Rs.389 crores in Q1 FY’21. Debt Equity at 0.62 times is the same as Q1 of last year.

The company saw strong demand for the AVTR range – India’s first modular truck platform, and this demand is expected to further improve, mirroring the increased economic activity expected.  In the LCV segment, the recently launched 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 Defence, Power Solutions and After-market continue to contribute strongly to the top line of the Company.

As the world recovers from the second wave, the Company is focusing on vaccination and the adherence of safety protocols, to try and ensure that all its stakeholders stay protected from a potential third wave. The company has already vaccinated 76% of all its employees and is rapidly scaling up to ensure complete coverage. The Company is also working closely with Government agencies in order to expend its CSR spends on community vaccination drives.

Mr. Vipin Sondhi, MD & CEO, Ashok Leyland, said “The industry has seen signs of volume recovery in Q1 FY’22 over the same period last year, and we expect this trend to continue going forward. We have worked to improve our businesses and ensured a strong focus on reining in costs this quarter. Our digital-first approach is helping us expand our offerings and getting in newer set of customers. With our robust LHD portfolio we are intensifying our global market expansion strategy, as we continue to focus on achieving our vision of being among the top 10 global CV makers.

Recently we announced our strategic steps to move towards net zero carbon mobility through our subsidiary, Switch Mobility. We have also formed an ESG committee of the Board, which will guide and propel us to achieve our sustainability agenda.”

Mr. Gopal Mahadevan, Director & CFO, Ashok Leyland, added, “With our volumes picking up on account of our versatile product offerings, our robust cost initiatives have helped us improve our bottom line. Revenue from our other businesses like power solutions, defence and digital customer solutions, have also contributed increasingly, improving our revenue potential. We will continue to nurture our growth businesses, while we keep our focus on cost initiatives and converting the receivables & inventory to cash.”

The supply of Electronic Control Units (ECUs), continues to be a concern, owing to the limited availability of Semi-Conductors. The industry is also feeling the impact of high raw material prices, especially steel. The management continues to monitor the situation very closely and expects it to soften going forward.