Net profit soars 274% YoY to Rs 901.4 cr

NEW DELHI: Commercial vehicle maker Ashok Leyland said its net standalone profits for the quarter ended March stood at Rs 901.37 crore, up 273.74 per cent from Rs 241.17 crore in the same quarter last year.

Revenue from operation of the

Group firm climbed 24.90 per cent from Rs 7,000.49 crore to Rs 8744.29 crore in the corresponding quarter last year.

The operating margin was at 8.87 per cent, compared to 7.63 per cent in the year-ago quarter and 4.04 per cent in the previous quarter. Net profit margin increased to 10.31 per cent from 3.45 per cent and 0.10 per cent, respectively.

Ashok Leyland’s truck market share for Q4FY22 improved to 30.6 per cent vis-à-vis 28.9 per cent in Q4FY21. This is the highest market share seen in the last 11 quarters.

This performance was backed by the successful AVTR range. Q4 MHCV and LCV exports were at 4173, growing by 32 per cent over Q4 last year.

“The CV industry is on a recovery owing to the improvement in the macroeconomic environment and healthy demand from the end-user industries. The MHCV segment is leading the recovery riding on the back of growth in core sectors such as construction & mining, agriculture, the increased capital outlay for infrastructure projects and pent-up replacement demand. The performance of our BS6 products have been very good and the introduction of CNG products helped us regain our market share,” said Dheeraj Hinduja, Executive Chairman, Ashok Leyland.

“LCV volumes driven by increased demand for last-mile connectivity, especially from the e-commerce segment are expected to grow further. The focus on Exports, Defence, Power Solutions and Parts businesses will ensure balanced growth, even as we expand the reach and the products of our core MHCV business. We are keenly following the commodity prices, and the situation on the supply of semiconductors and hope that both will ease.”

The directors have recommended a dividend of Re 1 per equity share.