Ashok Leyland’s Q4 FY2017 revenue up 13 percent

The flagship company of Hinduja Group, riding on domestic volume growth and aftermarket revenues, posted Q4 FY 2017 revenues of Rs 7,057 crore, an increase of 13 percent compared to Rs 6,237 crore for the same period last year. 

Net profit stood at Rs 476 crore against a loss of Rs 141 crore for same period last year (after exceptional items). The company recorded its highest ever revenue of Rs 21,332 crore with EBITDA margin of 11 percent (its straight 9^th quarter double digit EBITDA) for FY 2016-17 a growth of 7 percent compared to Rs 19,933 crore with EBITDA margin of 11.9 percent during the same period last year. Net profit for FY 2016-17 stood at Rs 1,223 crore recording a 214 percent jump in net profits against Rs 390 crore for same period last year (after exceptional items).

With the markets remaining mostly flat, the company saw a growth of 4 percent in volumes in FY 2016-17 compared to previous year. Attributing its growth the company said new product launches across different segments helped improve its market share, while its aftermarket revenues grew by 31 percent, at the same time the company said improving its operational efficiency along with tax savings, despite increase of cost in raw materials helped company achieve its historic growth.

Speaking to Autocar Professional, Gopal Mahadevan, CFO, Ashok Leyland, said, “We have increased our market share from 23 ½ percent to almost 33.8 percent in the last 5-6 years. This year, despite increase in raw material cost and few export orders being missed, we have achieved double-digit EBITDA growth for 9 straight quarters owing to our operating efficiency. While we will pursue growth, we want to do it profitably and the team continues its focus on operating costs and margins. Debt equity is reduced to 0.1 and our credit rating has been upgraded to ‘AA’.”

Commenting on the results, Vinod K Dasari, managing director, Ashok Leyland, said, “The highlight for us this year is the growth in profits and our pan-India market share. Our continued focus on controlling costs has paid rich dividends and helped us achieve a double-digit EBITDA for the ninth straight quarter.  We are happy to state that we are slowly but surely turning around the operations of HFL and the company has become EBITDA positive for last six months.”