Ashok Leyland Q2 net loss narrows to Rs 83 crore YoY, revenue up 57%

During the quarter, the company's raw material cost increased by 61 per cent from Rs 1,922 crore during Q2FY21 to Rs 3,093 crore in Q2FY22

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Ashok Leyland Ltd, flagship company of the Hinduja Group, has posted a net loss of Rs 83 crore for the second quarter of the financial year 2021-22 compared to a net loss of Rs 147 crore in the July to September quarter of the previous financial year.

The company reported a 57 per cent increase in year-on-year revenues in Q2 FY22. The revenues for the quarter stood at Rs 4,458 crore as against Rs 2,837 crore in Q2 FY21. During the quarter, the company’s raw material cost increased by 61 per cent from Rs 1,922 crore during Q2FY21 to Rs 3,093 crore during the same quarter this fiscal. Ashok Leyland’s domestic medium and heavy commercial vehicles (M&HCV) sales volume for the period was at 11,988 unit up by 71 per cent from 6,994 units during Q2 FY21

The company’s domestic light commercial vehicles (LCV) volumes for Q2FY22 was seen at 13,328 units, posting a growth of 22 per cent compared to 10,952 units last year in the same quarter. Export volumes (MHCV & LCV) for Q2FY22 was also up by 49 per cent from 1,491 units during Q2FY21 to 2,227 units during the same period this fiscal. Net cash generated for the quarter was Rs 1,063 crore which was used to retire debt. Net debt now stands at Rs 3,112 crore in Q2 as compared to Rs 4,175 crore in Q1.

“The industry has seen signs of volume recovery in Q2FY22 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, managing director and chief executive officer, Ashok Leyland.

The company said that Switch Mobility, the EV arm of Ashok Leyland, continues to grow its order book in India, UK and EU and has generated significant interest at COP26, being the first automotive manufacturer to commit to achieving net zero carbon in its operations for 2021.