Ashok Leyland Q4 profit jumps multi-fold to Rs 901 cr

Ashok Leyland Limited on Thursday reported a 273.8 per cent jump in its net profit at Rs 901 crore for the quarter ended March 31, 2022. It had reported a net profit of Rs 241 in the corresponding quarter of FY21. 

The firm's revenue grew by 25 per cent year on year. It reported a revenue of Rs. 8744 crore in Q4 FY22 as against Rs 7,000 crore for the same period last year. EBITDA during the January-March quarter of FY22 was at 8.9 per cent as against 7.6 per cent last year.

Ashok Leyland's truck market share for Q4 FY22 jumped to 30.6 per cent compared to 28.9 per cent in Q4 FY21, this is the highest market share seen in the last 11 quarters. 

For the full year, revenue increased to Rs 21,688 crore as against Rs 15,301 crore over the same period last year. Net profit was at Rs 542 crore as against a loss of Rs 314 crore last year. Full-year EBITDA was at 4.6 per cent as against 3.5 per cent last year. Cash generated during the year was Rs 1888 crore. Debt net of cash was at Rs 720 crore. 

The firm stated that its performance was backed by the successful AVTR range and the launch of the CNG range in ICV's. Despite the pandemic situation, Q4 MHCV & LCV exports at 4173 grew 32 per cent over Q4 last year. On a full-year basis, the firm's export volumes at 11014 units were higher than last year by 38 per cent. 

Moreover, the Bord of Directors of the Hinduja Group firm have recommended a 100 per cent dividend of Rs 1 per equity share of Rs 1 each for the financial year ended 31 March, 2022.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland Limited said, "We have seen recovery in Q4 FY'22 and the overall performance has been very good. 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 & mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand. The performance of our BS6 products have been very good and the introduction of CNG products has helped us regain our market share," he added. 

Shares of Ashok Leyland closed at Rs 123.30 per scrip on BSE, down 4.45 per cent from its previous close.

Also read: Ashok Leyland logs 42% rise in total CV sales in April