Ashok Leyland nets 1,223 cr profit

Top officials said the launch of six new products across different segments helped it gain market share. Having introduced India’s very first electric bus, the automotive major is ramping up its capacity for electric vehicles. 

The company posted a 11 per cent EBITDA margin (Earnings before interest, tax, depreciation and amortization) for FY 2016-17 – being the ninth straight quarter of double digit EBITDA performance for the company. It also increased its all India market share to 33.8 per cent, a gain of 1.1 per cent over last year. The market share increase is across all segments and regions. 

Vinod K Dasari, MD, Ashok Leyland Ltd, 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 ninth straight quarter.  We launched BS4 engines with the AL’s iEGR technology suited for our customers, especially in developing economies. This unique technology will help enhance profits of our customers and grow our share. We are slowly but surely turning around the operations of HFL and the company has become EBITDA positive for last six months.” 

Gopal Mahadevan, CFO, added, “While we will pursue growth, we want to do it profitably. The team continues to focus on operating costs and margins. The company continues to be the most profitable commercial vehicle (CV) company in India. Debt equity is reduced to 0.1 and our credit rating has been upgraded to ‘AA’.” 

The total MHCV (Medium and Heavy Commercial Vehicle) industry volume for FY 201617 was 3,02,529 units as against 3,02,397 units in the same period last year, as the market remained flat. 

However, the company’s volumes showed a growth of 4 pc; 1,02,313 for FY 2016-17 as against 98,809 for FY 2015-16, resulting in an increase in market share of 1.1 pc.