Ashok Leyland jumped 5.2% to Rs 124.35 after the commercial vehicles maker recorded net profit of Rs 241.77 crore in Q4 FY21 compared with net loss of Rs 57.32 crore in Q4 FY20.
The flagship of Hinduja Group posted an 83% rise in net sales to Rs 6,972 crore in Q4 FY21 from Rs 3,814.16 crore in Q4 FY20. The company posted a profit before tax of Rs 313.94 crore in Q4 FY21 as against a pre tax loss of Rs 72.1 crore in Q4 FY20.During Q4 FY21, the company's medium and heavy commercial vehicles (MHCV) truck volumes surged 111% year on year which is better than the rate of growth of the industry. The company said its MHCV truck market share for Q4 FY21 has therefore improved to 28.9% vis-a-vis 27.6% in Q4 FY20. Sequentially, over Q3 FY21, MHCV truck volumes for the company have grown by 57% in Q4 FY21 which was higher than the industry growth of 53%, thereby resulting in market share improvement of 0.8% (28.9% in Q4 Vs 28.1% in Q3). Q4 EBITDA improved to 7.6% as against 4.8% last year.
LCV volume for Q4 FY21 stood at 17,042 units which is 112% higher than last year volume of 8,057 units. The Bada Dost launched in September 2020 has clocked good volumes with more than 4,550 vehicles been sold in Q4 FY21. Despite the pandemic situation, Q4 MHCV & LCV exports stood at 3,164 units rising by 40% over Q4 FY20. On a full year basis, export volumes stood at 8,001 units, lower than last year (8,920 nos.) by 10%.
Revenue for the year ended March 2021 (FY21) stood at Rs 15,301 crore, declining 12.4% from Rs 17,467 crore posted in the year ended March 2020 (FY20). Loss before tax came at Rs 412 crore in FY21 as against a profit before tax of Rs 362 crore in FY20. Ashok Leyland registered a standalone net loss of Rs 314 crore in FY21 as against a profit after tax of Rs 240 crore in FY20.
Vipin Sondhi, MD & CEO of Ashok Leyland said, "We have seen recovery in Q4 FY'21 and the overall performance has been better. However, with the sudden onset of the second wave, the challenges for the industry continues. We are better prepared this time. With India's GDP poised to grow at 9.5% in FY'22, it augurs well for the CV industry. At Ashok Leyland, we remain rock solid and resilient, driven by our Newgen products and a talented team we are confident that we will come out stronger once demand picks up. This will help us deliver profitable growth."
Going forward Ashok Leyland sees good opportunities to continue to grow the exports, defence, power solutions, LCV and parts business even as it expands the reach and products of the core MHCV business. The focus on digital will help leverage the benefits of efficiency and cost. Customer requirements will be at the core of all the digital initiatives. The emerging businesses such as Electric Vehicle (EV) and Customer Solutions (CSB) will assist in complementing the core business. Ashok Leyland has created a dedicated EV-only entity called SWITCH Mobility headquartered in UK.
Meanwhile, the board has recommended a dividend of Rs 0.60 per equity share.
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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.
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