Q1 FY2018 sees uptick in Ashok Leyland M&HCV market share

Ashok Leyland, which announced its first quarter FY2018 results today, has gained market share in 12 of the last 13 quarters.

The Chennai-based manufacturer, which has a 16.61 percent share in the overall commercial vehicle market (as per SIAM data) for the April-June 2017 period, has a 36.35 percent market share in M&HCV passenger carriers and 34.32 percent share in M&HCV goods carriers. The company has registered net revenue of Rs 4,514 crore in Q1 FY2018, a marginal decrease of 0.38 percent (Q1 FY2017: Rs 4,531 crore).

Net profit for Q1, FY2017 stands at Rs 111 crore as against Rs 290 crore in Q1, 2016. As per Ashok Leyland, profitability has been affected due “to a richer mix and exchange gain on swap contracts in Q1 last year. The mix is expected to significantly improve in the coming quarters.”

The company sees the next three quarters promising as demand is expected to pick up on the back of government spending on infrastructure as well as a positive impact of the Goods and Services Tax (GST).

Commenting on the Q1 result, Vinod Dasari, MD, Ashok Leyland said, “It has been a very satisfying quarter. Despite all the challenges, our robust market share growth exemplifies the technological leadership of Ashok Leyland.”

“Our financial performance continues to be robust. The best part about Ashok Leyaland’s initiatives is the strong customer focus even as we drive financial performance. Debt/equity for the quarter was 0.3:1,” said Gopal Mahadevan, CFO, Ashok Leyland.