Ashok Leyland gallops on reporting turnaround Q3 numbers

Ashok Leyland jumped 4.27% to Rs 154 after the company reported net profit of Rs 361.34 crore in Q3 FY23 compared with net loss of Rs 5.76 crore in Q3 FY22.

Net sales jumped 63.3% to Rs 8,984.95 crore in Q3 FY23 as against Rs 5,503.64 crore in Q3 FY22.

Profit before tax soared to Rs 566.52 crore in Q3 FY23 from Rs 27.07 crore in Q3 FY22. EBITDA surged 255% to Rs 797 crore in Q3 FY23 as against Rs 224 crore in Q3 FY22. EBITDA margin stood at 8.8% in Q3 FY23 as compared with 4.0% in Q3 FY22.

Ashok Leyland's domestic MHCV volume at 28221 units, grew by 69% over the same period last year (16,667 units). The company has achieved a MHCV market share of 33 % in Q3 FY23. Ashok Leyland's domestic LCV volumes jumped 15% to 16,405 units in Q3 FY23 as against 14,233 units in Q3 FY22.

"The company saw growth in all three segments - MDV, ICV and LCV. The company expanded its robust portfolio in both MHCV and LCV segments with the launches of partner super, Bada Dost 11 and 12 variants. In the LCV segment, both Dost and Bada Dost continued to perform very well. The company saw strong demand for the AVTR range - India's first modular truck platfotm, and this demand is expected to further improve, mirroring the increase in economic activity. Other businesses like after-market and power solutions business continue to contribute strongly to the top line of the company. Going forward, last-mile connectivity demand propelled by e-commerce is likely to support LCV truck volumes," the company said in exchange filing.

Dheeraj Hinduja, executive chairman, Ashok Leyland, said, Our team continues to pursue better realisations even as we expand our market share. This, along with our continued focus on optimising input costs, has helped us achieve better financial performance. The softening of commodity prices has also been positive. The industry continues to grow and has seen strong volumes in Q3 FY23 over the same period last year. We remain canfident and optimistic about the future as macroeconomic factors continue to be favourable. With our robust product portfolio, we are intensifying our global market expansion strategy."

Shenu Agarwal, managing director & CEO, Ashok Leyland, added, The current quarter saw the confluence of continued uptick in our volumes, better realisations and lower input casts thus helping us achieve higher profitability as well as market share."

Meanwhile, the company's total sales (including domestic and exports) for January 2023 stood at 17,200 units, up by 23% as against 13,939 units in January 2022. Total domestic sales for January 2023 stood at 16,198 units, jumped by 27% as against 12,709 units in same period year ago. Total vehicle exports declined 18.54% year on year to 1,002 units in January 2023.

Ashok Leyland is engaged in manufacture and sale of a wide range of commercial vehicles. The company also manufactures engines for industrial and marine applications, forgings and castings.

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