Companies

Ashok Leyland reports ₹241 crore profit in Q4, ₹314 loss in FY21

Our Bureau Chennai | Updated on June 25, 2021

The company saw healthy sequential recovery in the second half of FY21 post the gradual removal of the lockdown.

Ashok Leyland reported a net profit of ₹241 crore for the quarter-ended March 31, 2021 compared with a net loss of ₹57 crore in the year-ago period, on the back of recovery in the commercial vehicle market prior to the second wave.

Profit before tax (PBT) for the quarter stood at ₹314 crore as against a loss of ₹72 crore for the same period last year. Q4 EBITDA stood at 7.6% as against 4.8% last year, according to a statement.

The total MHCV industry volume had gone up by 66 per cent. The company’s revenue stood at ₹7,000 crore in March quarter as against ₹3,838 crore for the same period last year, an increase of 82 per cent. During Q4FY21, year-on-year MHCV truck volumes for the firm grew 111 per cent which was higher than the growth rate of the industry.

Also read: Ashok Leyland-arm acquires electric vehicles maker Switch Mobility Automotive

However, for the full year FY21, the company reported a net loss of ₹314 crore when compared with a net profit of ₹240 crore in FY20. Full year EBITDA stood at 3.5% as against 6.7% last year.

Revenue for FY21 stood at ₹15,301 crore as against ₹17,467 crore in the previous year as the total MHCV industry volume for FY21 declined by 28%.

Second wave challenges

The challenges in the market due to Covid-19 impacted the volumes and performance of the company and the industry in the first half of FY21 However the company and the industry saw healthy sequential recovery in the second half of FY21 post the gradual removal of the lockdown.

“We have seen recovery in Q4FY21 and the overall performance has been better. However, with the sudden onset of the second wave, the challenges for the industry continue. We are better prepared this time,” said Vipin Sondhi, MD & CEO, Ashok Leyland.

Despite the pandemic situation, exports (MHCV & LCV) of the company stood at 3164 units, up 40% over Q4 last year (2225 units). For the full year FY21, export volumes stood at 8,001 units, down 10%.

“Our market shares have been growing steadily quarter-on-quarter in MHCV and LCV, and volumes have really picked up. All other businesses including aftermarket and power solutions have done exceptionally well. The focus on cost and productivity continues,” Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland said.

The Board has recommended a dividend of ₹0.60 per equity share for FY21.

Published on June 25, 2021

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