Ashok Leyland Q4 net profit fell 17% to ₹751 cr.

Ashok Leyland Managing Director and Chief Executive Officer Shenu Agarwal

Ashok Leyland Ltd., (ALL) reported a 17% decline in fourth-quarter standalone net profit at ₹751 crore.

“Q4 of FY22 witnessed an exceptional revenue of ₹468 crore,” said CFO Gopal Mahadevan explaining the fall in revenue. “Normal net profit would be ₹433 crore… so, current year net profit will be higher by 73%,” he said.

“We have done well on all fronts. The better performance is due to the increase in revenue and consequent improvement in EBITDA margins. ALL recorded the highest revenue of ₹36,144 crore for FY23,” Mr. Mahadevan said.

He also said that ALL generated cash of ₹963 crore and ended with a net cash surplus of ₹243 crore against net debt of ₹720 crore. For FY24, the company will have a capex of ₹600-750 crore for capacity expansion.

During Q4, profit from operations rose to ₹11,626 crore, from ₹8,744 crore, and cost of materials rose 26% to ₹8,080 crore, the commercial vehicle manufacturer said in a regulatory filing .

The board has recommended a dividend of ₹2.60 per share.

ALL’s truck market share improved to 32.7% from 30.6%. Bus market share increased slightly to 27.1% (26.4%). Domestic light commercial vehicle (LCV) volumes grew by 18% to 18,840 units, said MD & CEO Shenu Agarwal.

Despite geopolitical headwinds, on a full-year basis, export volumes rose 2% to 11,289 units, he added.

“In the LCV segment, both Dost and Bada Dost performed very well. Going forward, last-mile connectivity demand driven by e-commerce is likely to support LCV truck volumes. ALL has expanded its network by opening 152 new outlets across the country,” he said.

“The CV industry is buoyant due to favorable macroeconomic factors and a healthy demand from end-user industries,” said executive chairman Dheeraj Hinduja. “This trend is expected to continue with growth in key sectors such as construction and mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand,” he added.

To balance the volatility of its core business, the company will continue to focus on international operations, defense, power solutions and business segments.

With EVs gaining momentum, Switch Mobility is well-positioned to complement developments in ALL across a spectrum of alternative propulsion systems, he said.

Author: Amit Kumar
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