BackAshok Leyland posts ₹147 crore loss in Q2
Ashok Leyland’s revenue from operations during the last quarter is at ₹2,837 crore, down 28% YoYThe company sold only 19,445 commercial vehicles during Q2 this year as against 28,936 units a year-ago
PremiumMumbai: Commercial vehicle manufacturer Ashok Leyland Ltd has posted a loss of ₹147 crore on subdued performance during the September quarter.
The company had reported a profit of ₹39 crore in Q2 last fiscal.
Ashok Leyland’s revenue from operations during the last quarter is at ₹2,837 crore, down 28% YoY. The company’s revenue in Q2FY20 was at ₹3,930 crore.
The sharp decline in revenues comes on the back of muted demand for commercial vehicles (CVs) as freight transport and truck utilization levels continue to remain subdued.
The company sold only 19,445 commercial vehicles during Q2 this year as against 28,936 units a year-ago.
However, it recorded a sharp recovery quarter-on-quarter as economic activities have picked up post lockdown. The company reported a loss of ₹389 crore and revenue of only ₹651 crore in Q1FY21 earlier this year.
The company said its earnings before interest, taxes, depreciation and amortization or Ebidta for the September quarter are at 2.8% as against -51.2% in Q1FY21.
According to Gopal Mahadevan, Whole Time Director and chief financial officer at Ashok Leyland, revenue enhancement and operational efficiency initiatives taken up by the company during the crisis drove the CV maker to register a positive Ebidta of 2.8% for Q2.
“All the a-cyclical businesses including LCVs, aftermarket, defence and power solutions have performed really well during the quarter. Focus on operating cost and material cost optimization will continue, even as we pursue growth," Mahadevan said.
Ashok Leyland, in a note on Friday evening, said, “The company also generated ₹1,208 crore of cash from operations after capital expenditure and investments, which has helped the company bring down net debt to ₹3,076 crore from ₹4,284 crore in Q1FY21, further strengthening the balance sheet."
“While the challenges in the market due to COVID19 continue, the company has seen a marked improvement in its performance in this quarter. The performance of our newly launched platforms in the medium and heavy commercial vehicle (MHCV) and the light commercial vehicle or LCV segments gives us immense confidence that we are on the right track. As we go forward our focus on customer acquisition and network expansion will continue," said Vipin Sondhi, managing director and chief executive officer, Ashok Leyland Ltd.
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