Ashok Leyland clocks record Q2 revenue, net profit up 14%

Ashok Leyland has reported its highest ever revenue for the second quarter of a fiscal. In April-September 2017, the commercial vehicle manufacturer registered revenues of Rs 6,046.89 crore (excluding excise duty), up 31 percent YoY (Q2 FY17: Rs 4,622.41 crore). 

For H1 FY2017-18, the company had reported revenues of Rs 10,284.67 crore, a YOY increase of 16 percent (H1 FY 2016-17 Rs 8,881.25 crore).

The EBITDA for Q2 FY2018 was Rs 611.80 crore and margin 10.1 percent (Q2 FY17: Rs 536.49 crore), which means Ashok Leyland has posted double-digit growth in 10 out of the past 11 quarters.

Net profit in Q2 FY2018 is Rs 334.26 crore, an increase of 14 percent (Q2 FY2017: Rs 294.41 crore). Net profit in H1 FY2017-18 was Rs 445.50 crore, down 23.87 percent compared to Rs 585.19 crore for the year-ago period.

Ashok Leyland, which ranks third behind Tata Motors and Mahindra & Mahindra in the overall CV pecking order, sold 61,437 units in April-September 2017 for a market share of 17.39 percent. It continues to lead in M&HCVs (passenger carriers) selling 6,505 units with a market share of 37.26 percent, followed by Tata Motors with 36.52 percent. In M&HCVs (goods carriers), it sold 37,276 units for a market share of 33.51 percent, trailing behind Tata Motors which sold 56,776 units and had a market share of 51.05 percent. In Q2 the company exported 4,437 units, an increase of 39 percent YoY.

Commenting on the results, Vinod K Dasari, MD, Ashok Leyland, said: “It has been a satisfying performance. Despite all the challenges, our robust market share growth exemplifies the technological leadership of Ashok Leyland. Our iEGR technology for BS-IV has been well accepted by customers. To support the rapidly growing network of customers, we have invested in the digital marketplace to enhance our customer’s efficiency, performance, and profitability. Winning the Deming Prize for the second time is a testimony of our quality systems. We are very proud to have achieved this.”

Gopal Mahadevan, CFO, Ashok Leyland, added, “Our financial performance continues to be robust. Our working capital continues to be in control and debt / equity for the quarter was at 0.35:1. We will continue to pursue profitable growth”.

Earlier this year, Ashok Leyland was recognised amongst the top 40 Indian brands in the Best Indian Brand ranking published by Inter Brand. Also, Ashok Leyland, Hosur was conferred the 2017 Deming Prize for successful implementation of Total Quality Management.