Ashok Leyland records PAT of Rs 6 crore in Q3 FY22

Ashok Leyland reported a standalone net profit of Rs 6 crore in Q3 FY22 as against a net loss of Rs 19 crore in Q3 FY21.

The revenues for the quarter stood at Rs 5,535 crore as against Rs 4,814 crore in Q3 FY21, up 15% YoY.

While the company's domestic MHCV sales increased by 15% to 16,667 units, domestic LCV volumes declined by 11% to 14,233 units in Q3 FY22 over Q3 FY21. Export volumes (MHCV & LCV) for Q3 FY22 was 3,177 units, up 8% YoY.

In Q3 FY22, Ashok Leyland MHCV domestic truck and bus volumes have grown at almost twice that of industry at 39% compared to the TIV growth of 20%. Consequently, the company's MHCV market share has improved sequentially by 3.6% to 26.1% in Q3 FY33 from 22.5% in Q2. FY22.

During the quarter the company generated cash of Rs 415 crore which brought down the net debt as on 31 December 2021 to Rs 2,697 crore. Debt equity as at the end of the quarter was 0.42 times.

The company plans to launch further vehicles in Q4 of the current year under the CNG range, the auto maker said.

The company's Electric vehicle business under Switch continues to expand and grow. Switch UK has announced the setting up of a manufacturing plant in Spain. It continues to win electric vehicle orders from State Transport Undertakings. In Q3, Switch won a 300 electric bus order from Bangalore Metropolitan Transport Corporation. The company had also commenced the supply of the 40 units electric bus order from the Chandigarh Transport Undertaking.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said 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 expected to lead the recovery in the coming months riding on the back of growth in core sectors such as construction & mining, increased capital outlay for infrastructure projects, conducive financing environment and pent up replacement demand. The response for AVTR and our BS6 performance is very good. Together with the introduction of CNG, we are confident of recovering our market share.

LCV volumes should grow further owing to the increased demand for last mile connectivity, especially from the e-commerce segment. The focus on Exports, Defence, Power Solutions and Parts businesses will ensure a balanced growth, even as we expand the reach and the products of our core MHCV business. We are hoping that the commodity prices will decrease further and the situation on the semi-conductor will ease.

Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

The scrip fell 2.46% to end at Rs 132.95 on the BSE on Friday.

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