Leading truck and busmaker Ashok Leyland has reported a net profit of ₹68 crore for the quarter ended June 30, 2022, when compared with a net loss of ₹282 crore in the year-ago quarter, helped by the recovery in the medium and heavy commercial vehicle (MHCV) market.
EBITDA for the June quarter was ₹320 crore against a loss of ₹140 crore in the previous year. The company’s revenue grew 145 per cent to ₹7,223 crore ( ₹2,951 crore).
“With the 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,” said Gopal Mahadevan, Director & CFO, Ashok Leyland.
Ashok Leyland’s domestic MHCV volume grew by 189 per cent and market share grew from 27 per cent to 30 per cent. Truck market share was at 31 per cent for Q1FY23 against 26 per cent last year. The company’s domestic LCV volume was higher by 66 per cent at 14,384 units compared with 8,690 units.
Total exports (including MHCV & LCV) were at 2,527 units, up 76 per cent over 1,437 units in June 2021 quarter.
“The June 2022 quarter has been good for us as both our volumes and market share grew. We are continuing to grow amid some headwinds. LCV volumes could have been higher but for the inadequate availability of ECUs, which is now gradually improving. All our product segments are doing well. Also, commodity prices are beginning to decline and we hope to see the benefits of the same in Q2,” Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said during the interaction with the media over video conference mode.
The company continued to see strong demand for the AVTR range of trucks. 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.
Capex plans
Hinduja said Ashok Leyland has proposed a capex of ₹750 crore for the current fiscal and the management is in the final stages of firming up the deal for fundraising for Switch Mobility, which has proposed to invest up to $200 million in the next few years.