Ashok Leyland (AL) reported revenue of Rs. 8,744 Cr in Q4 FY22 as against Rs. 7,000 Cr for the same period last year, with YoY revenue growth of 25%. AL’s truck market share for Q4 FY22 improved to 30.6% vis-a-vis 28.9 % in Q4 FY21, the company’s highest market share in the last 11 quarters.
Revenue for the entire year FY22 stood at Rs. 21,688 Cr as against Rs. 15,301 Cr over the same period last year. This performance was backed by the successful AVTR range – India’s first modular truck platform and the launch of the CNG range in ICV’s. The AVTR platform gives customers a choice to customize their truck as per their unique requirements. The platform has been delivering best-in-class total cost of ownership across segments which has been widely appreciated by customers.
Despite the pandemic situation, AL’s Q4 MHCV & LCV exports stood at 4,173 nos., having grown by 32% over Q4 last year (3,164 nos.). On a full year basis, the company’s export volumes were at 11,014 nos., higher than last year (8,001 nos.) by 38%.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland Limited, said, “We have seen a good recovery in Q4 FY22 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 BS-VI products has been very good and the introduction of CNG products has helped us regain our market share.”
He continued, “LCV volumes driven by increased demand for last mile connectivity, especially from the e-commerce segment is expected to grow further. The focus on Exports, Defence, Power Solutions and Parts businesses will ensure a 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 semi-conductors and hope that both will ease. We are very excited with the prospects of Switch and its future growth prospects in electric vehicles. This complements well with the further developments that Ashok Leyland is making across a spectrum of alternate fuels. We are confident that we will deliver sustainable profitable growth going forward.”
Gopal Mahadevan, Whole Time Director & Chief Financial Officer, Ashok Leyland, said, “We believe that the Q4 performance posted a good recovery. 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. We have generated close to Rs. 2,000 Cr in cash this quarter owing to better profits and improved working capital, we will continue to focus on driving operational efficiency.”