Ashok Leyland posts Rs 241 crore profit in Q4 FY2021 on sequential CV recovery

Ashok Leyland has reported a net profit of Rs 241 crore in Q4 FY2021 year-on-year as against a loss of Rs 57 crore in Q4 FY2020. This performance comes on the back of sequential recovery in the Indian commercial vehicle market in the second half of FY2021, after the gradual removal of the lockdowns across the country.

The CV major reported a revenue of Rs 7,000 crore in Q4 FY2021, up 82 percent from Rs 3,838 crore in Q4 FY2020. The Q4 EBITDA was at 7.6 percent as against 4.8 percent in Q4 FY2020.

M&HCV truck volumes for Ashok Leyland grew  111 percent, bettering industry growth rate of 66 percent in Q4 FY2021. The company’s M&HCV truck market share has also improved to 28.9 percent in Q4 FY2021 from 27.6 percent in Q4 FY2020.

Revenue for full year was at Rs 15,301 crore in FY2021 as against Rs. 17,467 crore in FY2020. The FY2021 net loss was at Rs 314 crore as against a profit of Rs 240 crore in FY2020.

Sequentially, the M&HCV truck volumes have grown by 57 percent in Q4 FY2021, which was higher than the industry growth of 53 percent, thereby resulting in market share improvement of 0.8 percent.

Modular AVTR platform offers multiple options of axle configurations, loading spans, cabins, suspensions and drivetrains for the entire range of rigid trucks, tippers and tractors in the 18.5T to 55T category.

This performance was backed by the successful AVTR range, India’s first modular truck platform which was launched in June 2020. The AVTR platform gives customers a choice to customise their truck as per their unique requirements. The platform has been delivering best-in-class total cost of ownership across segments which has been widely appreciated by customers.

The Bada Dost, launched in September 2020, sold over 4,550 units in Q4.

LCV volumes for Q4 FY2021 at 17,042 units, up 112 percent year-on-year. The Bada Dost, launched in September 2020 in 2.99T and 3.49T variants, has clocked more than 4,550 vehicle sales in Q4. The Bada Dost clearly has helped Ashok Leyland increase its LCV goods carrier market share. 

Commenting on the company's market performance, Vipin Sondhi, MD and CEO Ashok Leyland said, “We have seen recovery in Q4 FY2021 and the overall performance has been better. However, with the sudden onset of the second wave, the challenges for the industry continues. We are better prepared this time. With India’s GDP poised to grow at 9.5 percent in FY2022, it augurs well for the CV industry.”

Gopal Mahadevan, Whole Time Director and Chief Financial Officer, Ashok Leyland added that, “We believe that the Q4 performance posted a good recovery. Our market shares have been growing steadily quarter on quarter in MHCV and in LCV, volumes have really picked up. All other businesses including Aftermarket and Power Solutions have done exceptionally well. The focus on cost and productivity continues”

Going forward, Ashok Leyland expects opportunities to grow the exports, defence, power solutions, LCV and parts business along with the core MHCV business. The emerging businesses such as electric vehicle (EV) and customer solutions (CSB) are expected to assist in complementing the core business. It has also created a dedicated EV-only entity called Switch Mobility headquartered in the UK, renaming Optare to reflect new green mobility goals.