Ashok Leyland Reports 25% Revenue Growth In Q4 FY 2022

Ashok Leyland announced its financial statement for the fourth quarter ending March 2022 and for the financial year. The commercial vehicle manufacturer reported a revenue of Rs. 8,744 crore, up 25 percent over the fourth quarter of FY2021. The company also recorded gains in profit before tax (PBT) and profit after tax (PAT) in the quarter with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) standing at 8.9% as against 7.6% the previous year. The company also reported that it had achieved a 30.6% market share in the truck market its highest in the last eleven quarters.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland Limited said, “We have seen recovery in Q4 FY'22 and the overall performance has been very good. 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, 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 has helped us regain our market share.

Ashok Leyland said its saw strong growth in demand for medium and heavy commercial vehicles.

Overall revenue for the financial year meanwhile stood at Rs. 21,688 crore as against Rs 15,301 crore in FY 2021, rising 42% year-on-year. The company also reported a PAT of Rs. 542 crore having recorded a loss of Rs. 314 crore in the financial year 2021.

The company attributed its stronger position owing to the demand for its products, particularly in the medium and heavy commercial vehicle space and the strong showing of its AVTR range and CNG models.

“Our truck market shares have been growing steadily quarter on quarter in MHCV and in LCV, volumes have picked up. All other businesses including Aftermarket and International Operations have done exceptionally well. The higher volumes and our cost management initiatives have helped us improve our bottom line,” said Gopal Mahadevan, Whole Time Director and Chief Financial Officer at Ashok Leyland Limited.