Ashok Leyland's revenue surges 57% to Rs 4458 crore

Ashok Leyland with a global expansion plan, has reported a 57 per cent increase in YoY quarter revenues for Q2 FY22. The revenues for the quarter stood at Rs 4,458 crore as against Rs 2,837 crore in the same quarter previous year. The company's domestic MHC vehicles volume at 11,988 grew by 71 per cent over the same period last year (6994).

Its domestic LCV volume for Q2 FY22 was at 13,328 numbers higher than Q2 FY'21 by 22 per cent (10952 numbers). Export volumes (MHCV & LCV) for Q2 FY22 was at 2,227 numbers higher than Q2 FY21 by 49 per cent (1,491 numbers).

The company narrowed its net loss to Rs 83 crore for Q2 FY'22, vis-a-vis a net loss of Rs 147 crores in Q2 FY21. Net Cash generated for the quarter was Rs 1063 crore which was used to pay down debt. Net Debt now stands at Rs 3,112 crore in Q2 (Rs 4,175 cr in Q1; debt equity 0.6 times).

The company saw strong demand for the AVTR range – India's first modular truck platform, and this demand is expected to further improve, mirroring the expected increase in economic activity. In the LCV segment, the recently launched Bada Dost has been well accepted by the customers and the company is ramping up production in line with market demand. Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes.

Switch Mobility, the EV arm of the company continues to grow its order book in India, UK and EU and has generated significant interest at COP26, being the first automotive manufacturer to commit to achieving net zero carbon in its operations for 2021.

Vipin Sondhi, MD & CEO, Ashok Leyland, said "The industry has seen signs of volume recovery in Q2 FY22 over the same period last year, and we remain confident and optimistic about the future. The economy is showing signs of return to growth and we at Ashok Leyland will continue to build competitive products and organisational capabilities for future growth. Our focus will be to continuously improve our market share and gain it profitably and sustainably. Our global market expansion strategy is also in place, as we continue to focus on achieving our vision of being among the top 10 global CV makers. I am happy with the progress made on the EV front by Switch."