The Economic Times daily newspaper is available online now.

    Ashok Leyland Q4 Results: PAT falls 17% YoY to Rs 751 crore, sales rise 33%

    Synopsis

    Ashok Leyland, a commercial vehicles manufacturer, recorded a 17% decline YoY in net profit to INR751.41 crore during the March quarter despite reporting a rise in revenue. Raw material expenses contributed significantly to the total expenses, surging to INR8,080.2 crore YoY from INR6,430 crore. For the fiscal year 2022-23, the firm's net profit surged more than twofold to INR1,380 crore, and revenue rose 67% to INR35,977 crore.

    Ashok Leyland Q4 Results: PAT falls 17% YoY to Rs 751 crore, sales rise 33%Agencies
    MUMBAI - Commercial vehicles maker Ashok Leyland on Tuesday reported a nearly 17% year-on-year (YoY) drop in net profit for the quarter ended March to Rs 751.41 crore, despite a rise in revenue.

    Total revenue from operations increased nearly 33% YoY to Rs 11,626 crore.

    The fall in the bottomline was primarily because the company accrued a one-time gain in the same quarter last year.

    “Normalised Q4 PAT would be at Rs 433 crore as against Q4 FY23 PAT of Rs 751 crore, current year PAT is higher by 73%. This impact is relevant for full year PAT also," said Gopal Mahadevan, whole-time director and chief financial officer.

    For FY23, the net profit of the company surged more than twofold to Rs 1,380 crore, and revenue grew 67% to
    Rs 35,977 crore.

    Better performance in FY 23 was due to an increase in revenue and consequent improvement in profitability, Mahadevan said.

    Operating profit, calculated as earnings before interest, taxes, depreciation and amortization (EBITDA), rose to Rs 1,276 crore in the March quarter from Rs 776.1 crore a year ago. Operating margins expanded 209 basis points on year to 10.97%.

    Other income for the quarter was Rs 39 crore, compared to Rs 24 crore a year ago.

    Total expenses, including interest cost, rose to Rs 10,597 crore from Rs 8,240 crore in the same quarter last fiscal.

    Raw material cost, which makes for a lion’s share in the total expenses, inched up both on a YoY and sequential basis. Input costs rose to Rs 8,080.2 crore from Rs 6,430 crore a year ago, and Rs 7,203 crore a quarter ago.

    Tax outgo for the quarter was significantly higher at Rs 373 crore, compared with Rs 97.3 crore a year ago.

    Cash generated during the quarter was Rs 2,287 crore and net cash surplus was Rs 243 crore, as against a net debt of Rs 720 crore for the same period last year.

    The company’s truck market share improved to 32.7% in the last quarter from 30.6% a year ago. Bus market share improved to 27.1% from 26.4 % last year. Ashok Leyland's domestic light commercial vehicle volumes grew by 18% in the reported quarter to 18,840 units.

    Despite geopolitical headwinds, the export volumes rose 2% in FY23 to 11,289 units.

    “The CV industry is buoyant due to favourable macroeconomic factors and a healthy demand from the end-user industries. This trend is expected to continue alongside growth in core sectors such as construction & mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand,” said Dheeraj Hinduja, Executive Chairman, Ashok Leyland.

    The board has recommended a dividend payout of Rs 2.60 a share for the year ended March. The dividend, if approved at the forthcoming annual general meeting (AGM), will be paid on or before August 19, the Hinduja Group company said.

    While the company will continue to pursue better realisations even as it expands market share, the focus will remain on bringing deeper efficiency and cost improvement, said MD & CEO Shenu Agarwal.

    Shares of the company ended 0.6% down at Rs 152.20 on the National Stock Exchange. The company announced earnings after markets closed.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in