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Ashok Leyland’s Q3 Results: Profit Grows 15% with Rs. 5.70 Cr

29 September 20233 mins read by Angel One
Ashok Leyland’s Q3 Results: Profit Grows 15% with Rs. 5.70 Cr
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On Friday, 11 February 2022, Ashok Leyland of Hinduja Group posted a consolidated net profit of Rs. 5.70 crores during the 3rd quarter ended on 31 December 2021. Isn’t it a whopping jump from Rs. 19.40 crores net loss in Q3 FY 21? Keep reading to know the details!

Get an Insight into Ashok Leyland’s Revenue!

Total revenue of the firm hiked from Rs. 4,813.50 crores in Q3 FY 21 to Rs. 5,535.20 crores in Q3 FY 22, marking a 15% YoY rise. Contrarily, EBITDA fell from Rs. 253.80 crores in Q3 FY 21 to Rs. 223.90 crores in Q3 FY 22. EBITDA refers to earnings before interest, tax, depreciation and amortisation at the operating level.

The domestic MHCV volume of the entity stood at 16,667 nos. ─ establishing a 15% growth from 14,468 nos. during the same quarter of the previous year. Its domestic LCV volumes fall from 15,991 nos. in Q3 FY 21 to 14,233 nos. in Q3 FY 22 due to semi-conductor scarcity. The export volumes (LCV & MHCV) rose by 8% to 3,177 nos. during Q3 FY 22 from 2,941 nos. during Q3 FY 21.

During the 3rd quarter, the firm generated Rs. 415 crores cash, bringing down net debt at Rs. 2,697 crores as of 31 December 2021. The debt-equity of the company is 0.42 times.

Know the Segment-Specific Details!

MHCV domestic bus and truck volumes of Ashok Leyland have almost doubled that of the industry, standing at 39% relative to 20% TIV growth. Consequently, its MHCV market share has increased to 26.10% during Q3 from 22.50% during Q2, indicating a 3.6% sequential improvement.

During the current year’s Q4, the entity is heading to launch more vehicles under its CNG range to strengthen its presence in this division. Customers are satisfied with the Tipper and Multi-Axle ranges of trucks ─ a new launch during this quarter. Additionally, Switch’s electric vehicle business continues to grow and expand.

Parting Words

Ashok Leyland is back in the green with its improved margins during Q3 of FY 22. Amidst end-user industries’ healthy demand and improved macroeconomic environment, the CV industry is recovering. A stifled replacement demand, conducive financing environment, hiked capital outlay for infrastructure-based projects and growth in mining and construction will recover the MHCV segment during the coming months.

Go through Angel One blogs to get the latest updates about investments, the stock market and IPOs.

Frequently Asked Questions

1. What is Ashok Leyland’s share price on BSE?

As of writing, Ashok Leyland’s share price is Rs. 132.95, which fell 2.46% or by Rs. 3.35 on the BSE.

2. Is Switch UK planning something new?

Yes, Switch UK will be setting up a manufacturing unit in Spain. An innovative ceremony took place recently.

3. What is Switch’s USP in Q3?

Switch received a three hundred electric bus order in Q3 from Bangalore Metropolitan Transport Corporation. It has also started the supply of forty nos. electric bus order via Chandigarh Transport Undertaking.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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