Ashok Leyland achieves 47 per cent revenue growth in Q1 FY18-19

Its domestic MHCV volumes grew by 60 per cent, revenues by 47 per cent, (Rs 6250 crore vs Rs 4258 crore) and PAT by 233 per cent (Rs. 370 crore vs Rs 111 crore) over Q1 last year. 

The Company continued to post robust profit numbers with EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) at 10.4 per cent for the current quarter as against 7.2 per cent (Rs 648 crore vs Rs 306 crore) in Q1 of previous year.

While the MHCV volumes, including exports, increased by 54 per cent to 30,647 units, the LCV volumes increased by 33 per cent to 11,481 units.

Ashok Leyland Managing Director Vinod K Dasari said the total industry volume registered an 84 per cent growth primarily driven by surge in infrastructure spend resulting in higher sale of Tipper and MAVs. 

There was also the impact of base effect. ‘‘We continued our focus on profitable growth and tight control on working capital, in a market which operated on heavy discounting and credit push’’, he added.

Despite pressure on realisation and raw material price increases, he was happy that the company continued to post growth with profitability.

‘‘We have grown significantly in Intermediate Commercial Vehicles (ICVs). The LCV and bus business have also posted very good growth. Exports have also grown by 24 per cent,’’ he said. 

Dasari said ‘‘we will continue to pursue our strategy of de-risking the company from cyclicality even as we pursue superior returns.’’ 

Company CFO Gopal Mahadevan said “we have seen a double-digit EBITDA margins for 13 of the 14 sequential quarters. Our net cash in the Balance Sheet was Rs 1165 crore,’’ he added.

‘‘Focus on operating costs, product mix and material cost optimisation will continue, even as we pursue growth,” he said.