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Ashok Leyland FY ’21 Revenues at Rs 15,301 croe; EBITDA at 3.5%

Ashok Leyland sees good opportunities to continue to grow the exports, defence, power solutions, LCV and parts business

Chennai, NFAPost: Ashok Leyland Limited, flagship of the Hinduja Group, reported a revenue of Rs 7,000 crore in Q4 FY ’21 as against Rs 3,838 crore for the same period last year; Revenue grew by 82% year on year.

PBT for the quarter was at Rs 314 crore as against of loss Rs 72 crore for the same period last year. PAT was at Rs 241 crore as against a loss Rs 57 crore in Q4 last year. Q4 EBITDA was at 7.6% as against 4.8% last year. The total MHCV industry volume had gone up by 66%.

During Q4 FY’21, year on year MHCV truck volumes for AL have grown at 111% which is better than the rate of growth of the industry. AL’s MHCV truck market share for Q4 FY’21 has therefore improved to 28.9% vis-a-vis 27.6% in Q4 FY’20.

Ashok Leyland Limited MD & CEO Vipin Sondhi said the company has seen a recovery in Q4 FY’21 and the overall performance has been better.

“However, with the sudden onset of the second wave, the challenges for the industry continues. We are better prepared this time. With India’s GDP poised to grow at 9.5% in FY’22, it augurs well for the CV industry. At Ashok Leyland, we remain rock solid and resilient, driven by our Newgen products and a talented team we are confident that we will come out stronger once demand picks up. This will help us deliver profitable growth,” said Vipin Sondhi.

Ashok Leyland Limited Whole Time Director & Chief Financial Officer Gopal Mahadevan said the company believes that the Q4 performance posted a good recovery.

“Our market shares have been growing steadily quarter on quarter in MHCV and in LCV, volumes have really picked up. All other businesses including Aftermarket and Power Solutions have done exceptionally well. The focus on cost and productivity continues,” said Gopal Mahadevan.

Q4 consolidated revenue at Rs 8,142 crore is 60% higher than last year’s revenue of Rs 5,088 crore. Q 4 consolidated PAT is at Rs 377 crore which is 5.5 times higher than last year’s PAT of Rs 58 crore.

Revenue for full-year was at Rs 15,301 crore as against Rs 17,467 crore over the same period last year. Loss before tax was Rs 412 crore as against a profit before tax of Rs 362 crore last year. Loss after tax was at Rs. 314 Cr as against a profit after tax of Rs. 240 crore last year. Full-year EBITDA was at 3.5% as against 6.7% last year. The total MHCV industry volume for the full year de-grew by 28%.

Full-year consolidated revenue at Rs 19,454 crore is 11% lower than last year revenue of Rs 21,951 crore. Consolidated Loss after tax is at Rs 70 crore when compared to a PAT of Rs 460 crore last year.

The challenges in the market due to Covid-19 impacted the volumes and performance of the company and industry in the first half of FY 2020-21, however, the company and the industry saw a healthy sequential recovery in the second half of FY 2020-21, post the gradual removal of the lockdown.

Sequentially, over Q3 FY ’21, MHCV truck volumes for AL have grown by 57% in Q4 FY’21 which was higher than the industry growth of 53%, thereby resulting in market share improvement of 0.8% (28.9% in Q4 Vs 28.1% in Q3).

This performance was backed by the successful AVTR range – India’s first modular truck platform which was launched in June ‘20. 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.

LCV volume for Q4 FY’21 at 17,042 nos. is 112% higher than last year volume of 8,057 nos. The Bada Dost launched in September ’20 has clocked good volumes with more than 4,550 vehicles having been sold in Q4 FY’21. On a full-year basis, LCV domestic volumes for AL have grown by 4% at 46,671 nos. (LY 44,912 nos) bucking the industry trend. LCV truck volumes for the industry de grew by about 11½%.

Despite the pandemic situation, Q4 MHCV & LCV exports at 3,164 nos. have grown by 40% over Q4 last year (2,255 nos.). On a full year basis our export volumes at 8,001 nos. is lower than last year (8,920 nos.) by 10%.

Going forward Ashok Leyland sees good opportunities to continue to grow the exports, defence, power solutions, LCV and parts business even as it expands the reach and products of the core MHCV business. The focus on Digital will help leverage the benefits of efficiency and cost.

Customer requirements will be at the core of all the Digital initiatives. Emerging businesses such as Electric Vehicle (EV) and Customer Solutions (CSB) will assist in complementing the core business. Ashok Leyland has created a dedicated EV-only entity called SWITCH Mobility headquartered in UK.

Ashok Leyland stays committed to Sustainability, and in order to bring a singular focus to this initiative, a separate ESG committee of the Board, headed by an independent director has been carved out. The role of this Board Committee will be to provide appropriate oversight and guidance in the Company’s journey on organization-wide ESG initiatives, priorities, and leading ESG practices.

The Directors have recommended a dividend of Rs. 0.60 per equity share of Re. 1 each for the financial year ended 31st March 2021.

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