Ashok Leyland records 17% drop in Q4 PAT but revenue soars 33% on healthy volumes; dividend declared
3 min read 23 May 2023, 05:24 PM ISTAlthough, Ashok Leyland posted a double-digit decline year-on-year in terms of PAT in Q4FY23, sequentially the profit has more than doubled. Also, healthy volumes lifted the top-line front in the quarter, alongside further improvement in market share.
PremiumAutomotive manufacturer, Ashok Leyland earned a net profit of ₹751.4 crore for the fourth quarter of FY23, declining by 16.6% compared to a PAT of ₹901.4 crore in Q4 of the previous fiscal. However, sequentially, the growth profitability more than doubled. Notably, Ashok Leyland's revenue posted strong growth on the back of robust volumes. The automaker has also announced a dividend of 260% for its shareholders.
Compared to December 2022 quarter where PAT was at ₹363.62 crore, Ashok Leyland posted a growth of 107.95% in Q4FY23.
Further, explaining the bottom-line performance in detail, Gopal Mahadevan, Whole-time Director and Chief Financial Officer, Ashok Leyland said, "Q4 FY ’22 witnessed one off exceptional gains of ₹468 crore. Normalised Q4 PAT would be at ₹433 Crores ( ₹901 – 468 crore) as against Q4 FY ’23 PAT of ₹751 crore, current year PAT is higher by 73%. This impact is relevant for full year PAT also FY ’23 PAT of ₹1380 crore will be higher than last year normalised PAT of ₹74 crore ( ₹542-468 crore) by 17.65 times. Better performance in FY ’23 is due to increase in revenue and consequent improvement in EBITDA margins."
Meanwhile, the company saw healthy growth year-on-year in terms of EBITDA, margins, and revenue.
Revenue from operations stood at ₹11,625.7 crore in Q4FY23, rising by 33% from ₹8,744.29 crore in Q4FY22, and also up by 28.75% from ₹9,029.67 crore in Q3FY23.
EBITDA stood at ₹1,275.7 crore in the quarter under review, surging by a whopping 64.4% from ₹776 crore in Q4 of FY22. Margins also expanded by 210 bps to 11% in Q4FY23 as against 8.9% in Q4FY22.
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The company's truck market share for Q4 FY'23 has improved to 32.7 % vis-a-vis 30.6 % in Q4 FY '22. Bus market share for Q4 FY23 has improved to 27.1 % as against 26.4 % for the same period last year.
Also, in the quarter, the domestic LCV volumes grew by 18% to 18,840 units as against 15,971 units in Q4FY22.
Cash generated during the quarter was ₹2,287 crore and net cash surplus was ₹243 crore as against a net debt of ₹720 crore for the same period last year.
For the full fiscal FY23, the revenue was at ₹36,144 crore compared to ₹21,688 crore last year. PAT was at ₹1,380 crore as against a profit of ₹542 crore last year. Full-year EBITDA was at 8.1% as against 4.6 % last year.
Going ahead, Dheeraj Hinduja, Executive Chairman, of Ashok Leyland Limited said, "The CV industry is buoyant due to favourable macroeconomic factors and a healthy demand from the end-user industries. This trend is expected to continue alongside growth in core sectors such as construction & mining, agriculture, increased capital outlay for infrastructure projects, and pent-up replacement demand."
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Ashok Leyland's focus on International Operations, Defence, Power Solutions, and Parts businesses will continue to balance the volatility of its core business.
With momentum gradually picking up in electric vehicles, Hinduja said, " Switch Mobility is well poised to complement the developments at Ashok Leyland across a spectrum of alternate propulsion systems."
Coming to shareholders, the Chennai-headquartered company has declared a dividend of ₹2.6 per share having a face value of Re 1 each for the fiscal year FY23.
The said dividend, if approved at the forthcoming Annual General Meeting (‘AGM’), shall be paid on or before August 19, 2023.
On BSE, Ashok Leyland's stock price closed at ₹152.15 apiece down by 0.65%.
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