Ashok Leyland, a leading commercial vehicle maker has reported revenue of Rs 7,223 crore in Q1 FY203, a growth of 145% YoY, net profit of Rs 68 crore compared to a net loss of Rs 282 crore for the same period last year.
In the first quarter, the company was able to increase its market share in the M&HCV segment from 27% to 30%; truck market share from 26.2% to 31.1%. In terms of sales number, the company sold 14,384 LCVs in the domestic market compared to 8,690 units for the same period last year.
Ashok Leyland says it continued to see strong demand for the AVTR range – India’s first Modular Truck Platform – and this demand is expected to further improve consequent to anticipated growth in the total industry volume. In the LCV segment, the Bada Dost saw good acceptance for which it is now ramping up production in line with market demand. Last-mile connectivity propelled by e-commerce is likely to maintain the demand for SCV trucks. Other businesses of the company like power solutions and aftermarket continue to contribute strongly to the bottom line. On the other hand, the LCV volume could have been better that was affected because of inadequate availability of ECUs, which is now gradually improving.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said “The industry has seen strong volume growth in Q1 FY 2023, and we expect this trend to continue going forward. The team is focused on market performance while reining in costs this quarter. Our digital-first approach is helping Ashok Leyland customers increase their business efficiency and we are continuing to expand our offerings. We are pleased that we have continued to grow our market share. With our robust LHD portfolio we are intensifying our international expansion strategy. Through our electric vehicle subsidiary, Switch Mobility, we are taking strategic steps to move towards net zero carbon mobility. The EV market is expanding fast and we are ready for participating in this growth. We are committed to achieve our sustainability agenda with a clear road map.”
Gopal Mahadevan, Director & CFO, Ashok Leyland said, “With expansion in revenues and efficient cost management we have seen our bottom line improving. The softening of commodity prices, in particular for steel, should impact our margins positively. The focus is on customer, cost and cash.”