Ashok Leyland slumped 4.15% to Rs 129.40 after the company posted a standalone net loss of Rs 19.38 crore in Q3 FY21 as against net profit of Rs 27.75 crore in Q3 FY20.
The profit was impacted by a one-time expenditure of Rs 85 crore in Q3 FY21 towards a voluntary retirement scheme (VRS).Net sales jumped 20.5% to Rs 4,789.82 crore in Q3 FY21 over Q3 FY20. The result was announced after market hours yesterday, 11 February 2021.
The commercial vehicle maker posted a pre-tax loss of Rs 18.25 crore in Q3 FY21 as against a pre-tax profit of Rs 54.17 crore in Q3 FY20. The company reported an EBITDA margin of 5.3% for Q3 FY21 as against an EBITDA of 2.8% in Q2 FY21 and 5.6% in Q3 FY20. The company has brought down net debt to Rs 2880 crore in Q3 from Rs 3,076 crore in Q2FY21.
After eight continuous quarters of de-growth, the MHCV Truck Total Industry Volume (TIV) has registered a year-on-year growth of 16% in Q3. While the industry Bus volumes continued to lag, Ashok Leylands said they are expected to recover with the opening up of restrictions. During Q3 FY21, year on year AL truck volumes have grown at almost twice the rate of the industry. AL's trucks Market Share for Q3 FY21 has therefore improved to 28.1% as against 24.9% in Q3 FY20. Sequentially, over Q2 FY21, AL MHCV truck volumes have more than doubled in Q3 FY21 which is in line with the TIV growth, therefore resulting in market share retention at 28.1%.
Ashok Leyland's domestic LCV volumes for Q3 FY21 stood at 15,991, sequentially higher by about 46% over Q2 FY21 (10952) and also higher than Q3 FY20 by 27% (12574). Exports volumes for Q3 stood at 2941 which is almost doubled over Q2 FY21 (1491) and is also higher than Q3 FY20 by 24% (2371).
The global automotive industry has been affected by the constraints in supply of Electronic Control Units (ECUs) owing to the non-availability of semi-conductors. Indian automotive industry has been no exception. The company's management is closely monitoring the situation as this can have an impact on future volumes if the constraints do not ease, the company said.
Commenting on company's performance, Vipin Sondhi, MD & CEO of Ashok Leyland said, "We have seen a marked improvement in the Company's performance in this quarter. All our newly launched products and our innovative i-Gen6 (Mid-NOx) BS6 solution have proved their mettle across the markets. Another innovation, the Digital Nxt, an industry-first combination of three innovative digital solutions has become extremely popular with fleet owners with more and more users getting on to the platform, deriving benefits of our digital Apps. On the cost front, our focus on controlling costs has paid dividends for us this quarter."
Gopal Mahadevan, director & CFO, Ashok Leyland said, "The performance for this quarter which resulted in a positive EBITDA of 5.3 % was made possible owing to the revenue enhancement and operational efficiency initiatives of the company during challenging times. LCV, After Market, Defence and Power Solutions businesses have performed really well during the quarter. The focus on resetting the operating cost to revenues and material cost optimization will continue."
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.
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