Ashok Leyland closed FY17 with record revenues of Rs. 21,332 crores and registered a 214 per cent jump in net profit, posting a 11 per cent EBITDA margin for 2016-17, its ninth straight quarter of double-digit EBITDA performance. The Hinduja Group flagship also increased its all-India M&HCV market share to 33.8 per cent, a gain of 1.1 per cent over the previous year, while also recording market share increase across all vehicle segments and regions.
The total M&HCV industry volume remained quite flat in FY17 with 3,02,529 units sold during the year as against 3,02,397 units sold in FY16. However, Ashok Leyland clocked a four per cent growth in volumes, selling 1,02,313 vehicles in FY17 as against 98,809 units sold in FY16, growing its M&HCV market share by 1.1 per cent.
Net profit stood at Rs. 1,223 crores against Rs. 390 crores during the same period the previous year (after exceptional items). EBITDA for the year was 11 per cent against 11.9 per cent.
Total M&HCV volumes, including exports, increased by three per cent to 1,13,296 units, while the LCV volume increased by four per cent to 31,770 units.
A dividend of Rs. 1.56 per share (156 per cent) was recommended by the Board for FY 2016-17, subject to the approval of the shareholders.
Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, said: “The highlight for us this year is the growth in profits and our pan-India market share. Our continued focus on controlling costs has paid rich dividends and helped us achieve a double-digit EBITDA for the 9th straight quarter. We launched BS4 engines with the AL’s iEGR technology which is best suited for our customers, especially in developing economies. We are confident that this unique technology will help enhance profits of our customers and grow our share. We are happy to state that we are slowly but surely turning around the operations of HFL and the company has become EBITDA positive for the last six months.”
Mr. Gopal Mahadevan, CFO, Ashok Leyland, added: “While we will pursue growth, we want to do it profitably and the team continues its focus on operating costs and margins. Ashok Leyland continues to be the most profitable CV company in India. Debt equity is reduced to 0.1 and our credit rating has been upgraded to ‘AA’.”
Key highlights of AL’s performance in FY17:
* Six new products launched across different segments
* The country’s first electric bus circuit launched; capacity for electric vehicles ramped up
* Deming Prize awarded for AL’s Pantnagar plant
* Sales & service network expanded to a total of 2,678 touch-points
* Recognized as one of the top 40 brands in India
* Awarded “AA” Credit Rating – the highest in 12 years
* Rated highest on dealer satisfaction in the M&HCV segment by JD Power
* Sunshine bus bagged the ‘School Bus of the Year’ Award
* 19 Defence tenders won
* Aftermarket revenues swelled by 31 per cent