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Commercial vehicle maker Ashok Leyland reported a 274% YoY surge in profits as net profit for the quarter ended in March 2022 came in at Rs 901.37 crores compared to Rs 241.17 crores in the corresponding quarter last year.
Revenues of the quarter stood at Rs 8,744.29 crores, up 24.91% YoY. Moreover, revenues jumped 58% QoQ from Rs 5,535.16 crores for the quarter that ended in December 2021. The operating margin for the quarter came in at 8.87%, improving from 7.63% last year. Net profit also improved to 10.31% from 3.43% last year. EBITDA for the quarter was Rs 776.2 crores as against Rs 534.2 crores last year.
IOC Q4 results declared, read more.
The company's truck market share for the relevant quarter improved to 30.6% from 28.9% last year, its highest market share in the last 11 quarters. Exports of the company's Medium and Heavy Commercial Vehicles (MHCVs) and Light Commercial Vehicles (LCVs) rose 32% to 4173 units.
For the period of 12 months ended on 31st March 2022, the company reported a net profit of Rs 541.83 crores, improving significantly from the net loss of Rs 313.16 crores last year. Sales of the company surged 42% to Rs 21,688 crores this year. EBITDA for the year came in at 4.6% against 3.5% last year as the export volume of the company came to 11,014 units, up 38%.
“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 leading the recovery riding on the back of growth in core sectors such as construction & mining, agriculture, the increased capital outlay for infrastructure projects, and pent-up replacement demand. The performances of our BS6 products have been very good and the introduction of CNG products helped us regain our market share,” said Dheeraj Hinduja, Executive Chairman of Ashok Leyland.
The Board of the company has recommended a dividend of Rs 1 per share as the final dividend, the record date for which has been set at 15th July 2022. The stock of the company has faced some decline during March but has recovered as well. After the announcement of the results, the stock witnessed a massive gap-up opening, opening up 5.8% higher than yesterday's close. It currently trades at around Rs 129 per share.
Article by Aman Agarwal.
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