Ashok Leyland back in black in Q4, but YoY profit down 58%

Mumbai: Commercial vehicles major Ashok Leyland on Thursday reported a return to profitability after three consecutive quarters of losses. However, on a full-year basis, the company remained in the red for the second consecutive year.

It reported a consolidated profit of ₹158 crore for the quarter ending 31 March, down 58% year-on-year. Consolidated revenue for the quarter grew by 22% year-on-year to ₹9,927 crore, led by higher sales as well as price increases. Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 18% to ₹ 1,194 crore. EBITDA margin narrowed by 41 basis points to 12%.

During the quarter, the company achieved a market share of over 30% in the lucrative trucks segment, its highest in 11 quarters.


The expansion of its sales network in the north and east of the country, the launch of CNG-powered options in the intermediate trucks segment and a revival in demand for multi-axle trucks helped Ashok Leyland improve its market share, according to chairman Dheeraj Hinduja. "Looking ahead, the industry is looking a lot more promising. Fortunately, all our products have been performing very well."

Hinduja acknowledged that the past couple of years has been particularly challenging for the commercial vehicles industry. A host of challenges came the industry's way from an economic slowdown to the Covid-19 pandemic and from a shortage of semiconductor chips to a spike in commodity prices.