Hinduja Group flagship Ashok Leyland reported a net loss of INR 282 crore for Q1 FY22 against INR 389 crore in the same quarter last year. However, the debt-equity at 0.62 times remains the same as Q1 of last year.
The company registered INR 2,951 crore in Q1 FY22 against INR 651 crore in Q1 FY21.
As per the press release from the company, its MHCV volume grew at 1,041% in the period under review, which is close to twice the industry growth of 562% over the same period last year.
The domestic LCV volumes grew by 224% at 8,690 units against 2,686 units. Export volumes were at 1,437 units (405 units).
The company saw strong demand for its modular truck platform - AVTR range, and it hopes the demand to improve further, mirroring the anticipated economic activity. 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. In the future, the last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes, the company said.
Vipin Sondhi, MD & CEO, Ashok Leyland, said the industry has seen signs of volume recovery in Q1 FY22 over the same period last year, and the company also 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 get in a 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,” Sondhi added.
Gopal Mahadevan, Director & CFO, Ashok Leyland, said robust cost initiatives have helped the company improve its bottom line. In addition, revenue from other businesses like power solutions, defence and digital customer solutions have also contributed increasingly, improving its revenue potential. “We will continue to nurture our growth businesses while we keep our focus on cost initiatives and converting the receivables & inventory to cash,” he added.
The supply of Electronic Control Units (ECUs) continues to be a concern, owing to the limited availability of semiconductors. The industry is also feeling the impact of high raw material prices, especially steel. The company added that the management continues to monitor the situation very closely and expects it to soften going forward.