Business Standard

Thursday, January 16, 2025 | 07:12 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Ashok Leyland rises after Q2 net loss narrows to Rs 83 cr

Image

Capital Market

Ashok Leyland gained 1.13% to Rs 147.25 after the company reported a lower standalone loss of Rs 83 crore in Q2 FY22 as against a standalone net loss of Rs 146 crore posted in Q2 FY21.

The flagship company of the Hinduja Group reported a 57% increase revenue from operations to Rs 4,458 crore in Q2 FY22 from Rs 2837 crores posted in Q2 FY21. The commercial vehicle manufacturer reported a lower pre tax loss of Rs 115.5 crore in Q2 FY22 as compared to a pre tax loss of Rs 157.8 crore posted in Q2 FY21.

Ashok Leyland's domestic MHCV volume stood at 11,988 units rising by 71% over the same period last year. The company's domestic LCV volumes for Q2 FY22 was at 13,328 units, 22% higher than Q2 FY21. Export volumes (MHCV & LCV) grew 49% year on year in Q2 FY22 to 2,227 units from 1,491 units sold in Q2 FY21.

 

The company said it saw strong demand for the AVTR range. The demand is expected to further improve, mirroring the expected increase in economic activity. In the LCV segment, the CV maker said its recently launched Bada Dost has been well accepted by the customers. The company is ramping up production in line with market demand. Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes. Other businesses like Defence and After-market continue to contribute strongly to the top line of the company.

Vipin Sondhi, MD & CEO of Ashok Leyland said, The industry has seen signs of volume recovery in Q2 FY'22 over the same period last year, and we remain confident and optimistic about the future. The economy is showing signs of return to growth and we at Ashok Leyland will continue to build competitive products and organisational capabilities for future growth. Our focus will be to continuously improve our market share and gain it profitably and sustainably. Our global market expansion strategy is also in place, as we continue to focus on achieving our vision of being among the top 10 global CV makers. I am happy with the progress made on the EV front by Switch.

Ashok Leyland said its net cash generated for the quarter was at Rs 1063 crore which was used to pay down debt. Net Debt now stands at Rs 3112 crore in Q2 FY22 from Rs. 4175 crore in Q1 FY22.

Ashok Leyland, flagship of the Hinduja group, is among the largest manufacturer of commercial vehicles in India and also among the biggest manufacturers of buses and trucks globally.

Powered by Capital Market - Live News

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Nov 15 2021 | 9:21 AM IST

Explore News