Ashok Leyland Q3 results: Reports 5.7 crore net profit, revenue rose 15%

Hinduja Group-owned Ashok Leyland reported a net profit
of Rs 5.7 crore for the third quarter ended December 31, 2021. In the same
quarter previous year, it reported a net of Rs 19.4 crore.

Ashok Leyland’s total quarterly revenue grew 15% YoY to
Rs 5,535.2 crore from Rs 4,813.5 crore in the year-ago quarter.

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EBITDA reduced 11.8% to Rs 223.9 crore in the reported
quarter as compared to Rs 253.8 crore in Q3 FY21. EBITDA margin declined to 4%
in Q3 FY22 from 5.3% in Q3 FY21.

The company’s domestic MHCV (Medium-Heavy Commercial
Vehicle) volume rose 15% to 16,667 units as against 14,468 units in the
year-ago period. Domestic volumes from light commercial vehicles (LCV) reduced
to 14,233 units in Q3 FY22 from 15,991 units in the corresponding quarter last
year. The shortage of semi-conductors negatively impacted production.

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Export
volumes for MHCV and LCV combined for Q3 FY22 was at 3,177 units, an 8%
increase from 2,941 units in Q3 FY21.

In the reported quarter, the company generated total cash
of Rs 415 crore which helped to reduce the Net debt to Rs 2,697 crore as of
December 31, 2021. The debt-equity ratio at the end of the quarter was 0.42
times.

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In September-December 2021 quarter, MHCV domestic truck
and bus volumes have grown at 39%, almost twice that of the total industry
volume (TIV) of 20%. Ashok Leyland’s MHCV market share has improved by 3.6% in
Q3 to 26.1% from 22.5% in Q2FY22.

The company is planning to launch further vehicles under
the CNG rate by the end of the fourth quarter of the current fiscal. The new
will further strengthen Ashok Leyland’s presence in this segment. Its latest
range of Multi-Axle and Tipper ranges have been well received by customers.

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The electric vehicle range under the brand Switch is
continuously expanding operations. Switch UK has announced to set up a
manufacturing unit in Spain.

In the December quarter, Switch received a 300 Electric
Bus order from Bangalore Metropolitan Transport Corporation. The company has
already delivered 40 electric buses to the Chandigarh Transport Undertaking.

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“The CV industry is on a recovery owing to the
improvement in the macroeconomic environment and healthy demand from the
end-user industries,” said Dheeraj Hinduja, executive chairman, Ashok Leyland.

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The results came on February 11 after the close of the
market hours. Shares of Ashok Leyland closed at Rs 132.95, down by 3.35 points
or 2.46% on the BSE.