Ashok Leyland, one of the largest commercial vehicle manufacturers, posted a standalone net loss of Rs 193.8 million for the quarter ended December 2020. It includes a one-time expenditure of Rs 850 million towards a voluntary retirement scheme.
The commercial vehicle manufacturer had reported a net profit of Rs 277.5 million in the same period last year.
Net sales of the company grew 19.87% to Rs 48,135.1 million in December 2020 from Rs. 40,156.5 million in December 2019.
The Company reported an EBITDA of 5.3% for Q3 FY21 against an EBITDA of 2.8% in Q2 FY’21 and 5.6% in Q3 FY20.
Total expenses increased 21.05% to Rs 48,197.9 million from Rs 39,816.4 million in the same quarter previous fiscal.
After eight continuous quarters of de-growth, the MHCV Truck Total Industry Volume (TIV) has registered a year on year growth of 16% in Q3. While the industry Bus volumes continued to lag, these are expected to recover with the opening up of restrictions. During Q3 FY21, year on year AL truck volumes have grown at almost twice the rate of the industry. AL’s trucks Market Share for Q3 FY’21 has therefore improved to 28.1% as against 24.9% in Q3 FY ’20. Sequentially, over Q2 FY’21, AL MHCV truck volumes have more than doubled in Q3 FY’21 which is in line with the TIV growth, therefore resulting in market share retention at 28.1%.
Ashok Leyland's domestic LCV volumes for Q3 FY21 at 15,991 nos. is sequentially higher by about 46% over Q2 FY'21 (10,952 nos) and also higher than Q3 FY'20 by 27% (12574 nos.).
Exports volumes for Q3 at 2941 nos. is almost doubled over Q2 FY21 (1491 nos) and is also higher than Q3 FY20 by 24% (2371 nos).
Vipin Sondhi, MD & CEO, Ashok Leyland said, "We have seen a marked improvement in the Company’s performance in this quarter. All our newly launched products and our innovative i-Gen6 (Mid-NOx) BS6 solution have proved their mettle across the markets. Another innovation, the "Digital Nxt", an industry-first combination of three innovative digital solutions has become extremely popular with fleet owners with more and more users getting on to the platform, deriving benefits of our digital Apps. On the cost front, our focus on controlling costs has paid dividends for us this quarter."
Gopal Mahadevan, Director & CFO, Ashok Leyland added, "The performance for this quarter which resulted in a positive EBITDA of 5.3 % was made possible owing to the revenue enhancement and operational efficiency initiatives of the company during challenging times. LCV, After Market, Defence and Power Solutions businesses have performed really well during the quarter. The focus on resetting the operating cost to revenues and material cost optimization will continue."
Shares of the company declined Rs 6.75, or 5%, to settle at Rs 128.25. The total volume of shares traded was 3,741,338 at the BSE (Friday).
