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(Photo: Mint)
(Photo: Mint)

Ashok Leyland reports net loss of 19.4 cr in Q3FY21

Ashok Leyland's Q3 revenue rises to nearly 20% to 4,814 cr as against 4,016 crore in the year-ago period

Ashok Leyland on Thursday reported a net loss of 19.4 crore for the quarter ended 31 December, 2020. The company's had reported a net profit of 28 crore in the year-ago period.

However, the commercial vehicle manufacturer witnessed a sequential fall in the net loss reported in the quarter ended Septmeber, 2020, which stood at 147 crore.

"The company has also brought down net debt to 2880 Crores in Q3 from 3,076 Crores in Q2 FY21, further strengthening the balance sheet of the company," Ashok Leyland said in a BSE filing.

Furthermore, the company posted a 70% increase in sequential-quarter revenues in Q3 FY21. The revenues for the quarter stood at 4,814 crore as against Rs. 2837 crore in Q2 FY21 and 4,016 crore in the year-ago period, it stated.

It reported EBITDA of 5.3% for Q3 FY21 against an EBITDA of 2.8% in Q2 FY21 and 5.6% in Q3 FY20.

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, it said.

While the industry Bus volumes continued to lag, these 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.

The company's trucks market share for Q3 FY’21 has therefore improved to 28.1% as against 24.9% in Q3 FY ’20, the company further stated.

Sequentially, over Q2 FY’21, AL MHCV truck volumes have more than doubled in Q3 FY’21 which is in line with the TIV growth, therefore resulting in market share retention at 28.1%, it informed.

Ashok Leyland’s domestic LCV volumes for Q3 FY21 at 15991 units is sequentially higher by about 46% over Q2 FY’21 (10952 nos) and also higher than Q3 FY’20 by 27% (12574 units) Exports volumes for Q3 at 2941 units is almost doubled over Q2 FY21 (1491 units) and is also higher than Q3 FY20 by 24% (2371 units), it stated.

Commenting on the Q3 results, Vipin Sondhi, MD & CEO, Ashok Leyland Limited 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".

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