Ashok Leyland has narrowed its net loss to Rs 282 crore in Q1FY22 against a net loss of Rs 389 crore in the corresponding quarter of the last fiscal. On Thursday, the company said it has seen a 353 per cent year-on-year increase in revenues during Q1 at Rs 2,951 crore.
The Hinduja flagship major said it has witnessed strong demand for the AVTR range – the country’s first modular truck platform — and this demand was expected to further improve. In the LCV segment, the recently launched Bada Dost has been well-accepted by the customers and the company is ramping up production in line with market demand. Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes, it said.
Other businesses like defence, power solutions and after-market continue to contribute strongly to the top line of the company.
Vipin Sondhi, MD & CEO, Ashok Leyland, said: “The industry has seen signs of volume recovery in Q1FY22 over the same period last year, and we expect this trend to continue going forward. We have worked to improve our businesses and ensured a strong focus on reining in costs this quarter. Our digital-first approach is helping us expand our offerings and getting in newer set of customers. With our robust LHD portfolio we are intensifying our global market expansion strategy, as we continue to focus on achieving our vision of being among the top 10 global CV makers.”
Gopal Mahadevan, director & CFO, Ashok Leyland, said, “With our volumes picking up on account of our versatile product offerings, our robust cost initiatives have helped us improve our bottom line. Revenue from our other businesses like power solutions, defence and digital customer solutions, have also contributed increasingly, improving our revenue potential. We will continue to nurture our growth businesses, while we keep our focus on cost initiatives and converting the receivables and inventory to cash.”
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