Ashok Leyland’s Q1FY2022 revenues came in at Rs 2,951 crores as against Rs 651 crore in Q1FY2021 on the back of strong volumes in the domestic M&HCV segment. It posted a net loss of Rs 282 crore for Q1 FY2022, lower than the net loss of Rs389 crores in Q1 FY2021.
The company saw strong demand for the AVTR range – its modular truck platform, and this demand is expected to further improve, mirroring the expected increase in economic activity.
In the LCV segment, the recently launched Bada Dost has been well accepted by the customers and the company is ramping up production in line with market demand.
Going forward, the company expects last-mile connectivity demand propelled by e-commerce to continue supporting ICV and LCV truck volumes.
Commenting on the Q1 performance, Vipin Sondhi, MD & CEO, Ashok Leyland, said “The industry has seen signs of volume recovery in Q1 FY2022 over the same period last year, and we expect this trend to continue going forward. We have worked to improve our businesses and ensured a strong focus on reining in costs this quarter. Our digital-first approach is helping us expand our offerings and getting in newer set of customers. With our robust LHD portfolio we are intensifying our global market expansion strategy, as we continue to focus on achieving our vision of being among the top 10 global CV makers.”
The CV major also announced strategic steps recently to move towards net zero carbon mobility through its subsidiary, Switch Mobility and “formed an ESG committee of the Board, which will guide and propel us to achieve our sustainability agenda,” Sondhi added outlining the growth drivers going forward.
Gopal Mahadevan, Director & CFO, Ashok Leyland, added, “With our volumes picking up on account of our versatile product offerings, our robust cost initiatives have helped us improve our bottom line. Revenue from our other businesses like power solutions, defence and digital customer solutions, have also contributed increasingly, improving our revenue potential. We will continue to nurture our growth businesses, while we keep our focus on cost initiatives and converting the receivables & inventory to cash.”
However, the supply of Electronic Control Units (ECUs), continues to be a concern, owing to the limited availability of semiconductors. The industry is also feeling the impact of high raw material prices, especially steel.