Ashok Leyland posts a profit in Q3

by Autocar Pro News Desk , 12 Feb 2022

Ashok Leyland posted a Rs 6 crore net profit in Q3 against a net loss of Rs 19 crore in Q3 FY21 and against a loss of Rs 83 crore in Q2 FY22. The company also reported a 15 percent increase in YoY quarter revenues that stood at Rs 5,535 crore as against Rs 4,814 crore in Q3 FY21. 

The company's domestic MHCV volumes grew by 15  percent  at 16,667 units against 14,468 units over the same period last year. LCV volumes were a tad down at 14,233 units as against 15,991 units. The company said the decline in numbers was due to the semiconductor shortage. 

In Q3FY22,  MHCV domestic truck and bus volumes have grown at almost twice that of industry at 39 percent compared to the total industry vehicle  growth of 20 percent. 

Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “The CV industry is on a recovery owing to the improvement in the macroeconomic environment and healthy demand. The MHCV segment is expected to lead the recovery in the coming months riding on the back of growth in core sectors such as construction and mining, increased capital outlay for infrastructure projects, conducive financing environment and pent up replacement demand.”

Gopal Mahadevan, Director & CFO, Ashok Leyland, added, “The higher volumes and our cost management initiatives have helped us improve our bottom line. We have generated close to Rs 300 crore in cash this quarter owing to improved working capital, and we will continue to focus on driving operational efficiency.”

CNG and EV

Ashok Leyland has recently introduced the Ecomet STAR on the CNG platform. The company plans to launch more vehicles in Q4 of the current year as part its CNG range. Also, the electric vehicle business under Switch Mobility continues to expand and grow.  In Q3, Switch won an order for 300 electric buses from Bangalore Metropolitan Transport Corporation. The company had also commenced the supply of electric buses to the  Chandigarh Transport Undertaking.