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Truck and bus maker Ashok Leyland has reduced its net loss to ₹83 crore for the quarter ended September 30, compared with a net loss of ₹147 crore in the year-ago quarter.
Revenue from operations grew 57 per cent at ₹4,458 crore compared to ₹2,837 crore in Q2 of the previous fiscal, helped by higher sales of trucks on the back of revival in demand.
Its domestic medium and heavy commercial vehicle sales grew 71 per cent at 11,988 units (6,994 units). LCV volumes were 22 per cent higher at 13,328 units (10,952 units), according to a statement.
Portfolio approach
“We have been driving a portfolio approach to our business, and apart from our core business, our other businesses like aftermarket, power solutions, defence and customer solutions, have contributed increasingly to our revenue. We will continue to focus on driving operational efficiency,” said Gopal Mahadevan, Director & CFO, Ashok Leyland,
However, the company could just about maintain its EBITDA of 3.0 per cent for the September quarter. It had reported an EBITDA of 2.8 per cent in Q2 FY21.
Its total expenses were at ₹4,595 crore (includes ₹3,093 crore of raw material costs and services) when compared with ₹3,015 crore (includes ₹1,922 crore of raw material costs).
Its depreciation and other expenses were higher at ₹184 crore (₹171 crore) and ₹504 crore (₹362 crore) respectively.
As a result, the company’s loss before exceptional items and tax stood at ₹116 crore against a loss of ₹156 crore in Q2 of previous fiscal.
Bullish on outlook
“The industry has seen signs of volume recovery in Q2 FY22 over the same period last year, and we remain confident and optimistic about the future. The economy is showing signs of return to growth and we at Ashok Leyland will continue to build competitive products and organisational capabilities for future growth. Our focus will be to continuously improve our market share and gain it profitably and sustainably,” said Vipin Sondhi, MD & CEO, Ashok Leyland.
Net cash generated for the September quarter was ₹1,063 crore, which was used to pay down debt. Net debt stood at ₹3,112 crore in Q2 (₹4,175 crore in Q1; debt equity 0.6 times).
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