Ashok Leyland Q4 FY2019 profit at Rs 653 crore, down 12%
With the success of its LCV portfolio and with a net cash positive at the year end with over Rs 700 crores of cash Ashok Leyland promises successful introduction of BS 6.
Ashok Leyland, flagship of the Hinduja Group reported a revenue of Rs 29,055 crore and a net profit of Rs. 1,983 crore for FY 2018-19. It posted a 10.8 percent EBITDA margin for FY19. The company reported a 12 percent YoY decline in profits with Rs 653 crore.
As per SIAM, the domestic MHCV industry volume in Q4 de-grew by 4 percent for FY2018-19 to 112,469 units. Ashok Leyland claims that its volumes grew by 1 percent to 41,519 units in the domestic market making its Q4 MHCV market share up at 36.9 percent as against 35.1 percent last year.
According to the financial report, the OEMs the profits before exceptional item and tax was at Rs 818 crore and volume for LCV increased by 8 percent to 15,502 units in Q4 FY2019. In FY2019, Ashok Leyland’s revenue increased by 10 percent to Rs 29,055 crore against Rs 26,356 crore last year. In the same period, the company reported its profit before exceptional item and tax at Rs 2,554 crore, up by 6 percent. Its total MHCV volume including exports was reported at 142,858 units, a growth of 9 percent and the volume for LCV increased by 25 percent, closing at 54,508 units.
Dheeraj Hinduja, chairman, Ashok Leyland said, “I am pleased that we have been able to maintain our market share despite competitive pressures and be profitable in the face of rising costs of input materials and regulatory changes. Our LCV programme continues its winning streak. We are well on our way to successful introduction of BS 6 and together with a range of products planned across the spectrum in FY '21, I am confident of maintaining the current growth momentum. In the medium term, we believe this sector holds strong potential which is crucial to the growth of the economy."
Gopal Mahadevan, chief financial officer, Ashok Leyland added, "We have grown our market share in both trucks and buses in the fourth quarter and will continue to focus on the twin engines of growth and profitability. We continue to be net cash positive at the year end with over Rs 700 crores of cash."
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