Ashok Leyland posts Rs 199 crore net profit in Q2, revenue up 85% YoY

Ashok Leyland, the flagship company of the Hinduja Group, has posted a net profit of Rs 199 crore during the second quarter of the financial year 2022-23, compared to a loss of Rs 83 crore during the same period last year.

The company has also achieved a market share of 32 per cent in Q2FY23. The revenues for the quarter stood at Rs 8,266 crore against Rs 4,458 crore during the July to September quarter of 2021-22.

Ashok Leyland's domestic MHCV (medium and heavy commercial vehicles) volume during the quarter under review was seen at 25,475 units, up 113 per cent over the same period last year (11,988), which is more than double the industry growth. This helped Ashok Leyland achieve market share gains of 9.6 per cent in the quarter, the company said in a statement.

Ashok Leyland's domestic LCV (light commercial vehicle) volumes for the second quarter of 2022-23 were at 17,040 units, up 28 per cent compared to 13328 during the same quarter last financial year. Export volumes (MHCV and LCV) for Q2FY23 were at 2780 units compared to 2,227 units during the same period the previous year, posting a rise of 25 per cent.

The company reported an EBITDA of Rs 537 crore (6.5 per cent) in Q2FY23 compared to Rs 135 crore (3 per cent) in Q2FY22. "Despite global recessionary trends, the Indian commercial vehicle market continues to grow well; the industry has seen strong volumes in Q2FY23 over the same period last year. We see the demand continuing in all segments of trucks and passenger vehicles, and we remain confident and optimistic about the future. Our robust market share growth exemplifies the technological leadership of Ashok Leyland. We continue to build competitive products and organisational capabilities for future products using alternate fuels," said Dheeraj Hinduja, Executive Chairman of Ashok Leyland.

During the quarter under review, the company's debt was at Rs 2,677 crore in July to September quarter this year. Debt Equity was at 0.37 times in Q2FY23 compared to 0.48 times in Q2FY22.

"While we will pursue growth, we want to do it profitably and sustainably; the team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, defence and digital customer solutions, which have contributed increasingly to our revenue," Gopal Mahadevan, director and chief financial officer, Ashok Leyland.