Ashok Leyland’s Q3 FY ’21 revenue increases sequentially by 70%. Q3 FY’21 EBITDA at 5.3 vs. 2.8% in Q2 FY’21

Ashok Leyland, flagship of the Hinduja Group reported a 70% increase in sequential quarter revenues in Q3 FY21. The revenues for the quarter stood at Rs. 4814 crores as against Rs. 2837 crores in Q2 FY'21 and Rs. 4016 crores in same period last year. The Company reported an EBITDA of 5.3% for Q3 FY21 against an EBITDA of 2.8% in Q2 FY'21 and 5.6% in Q3 FY20.

After eight continuous quarters of de-growth, the MHCV Truck Total Industry Volume (TIV) has registered a year on year growth of 16% in Q3.  While the industry Bus volumes continued to lag, these are expected to recover with the opening up of restrictions. During Q3 FY21, year on year AL truck volumes have grown at almost twice the rate of the industry. AL's trucks Market Share for Q3 FY'21 has therefore improved to 28.1% as against 24.9% in Q3 FY '20. Sequentially, over Q2 FY'21, AL MHCV truck volumes have more than doubled in Q3 FY'21 which is in line with the TIV growth, therefore resulting in market share retention at 28.1%.

Ashok Leyland's domestic LCV volumes for Q3 FY21 at 15991 nos. is sequentially higher by about 46% over Q2 FY'21 (10952 nos) and also higher than Q3 FY'20 by 27% (12574 nos.)

Exports volumes for Q3 at 2941 nos. is sequentially doubled over Q2 FY21 (1491 nos) and is also higher than Q3 FY20 by 24% (2371 nos).

The company reported a net loss of Rs 19 Crores for Q3 FY'21 (this includes a one- time VRS cost of Rs 85 Crores), as against a Net loss of Rs. 147 crores in Q2 FY21 and a net profit of Rs. 28 Crores in Q3 FY20. The company has also brought down net debt to Rs 2880 Crores in Q3 from Rs 3,076 Crores in Q2 FY21, further strengthening the balance sheet of the company.

Following the successful launches of its Modular Platform AVTR and Bada Dost, the company continued with its product launches of Boss LE and LX in the ICV segment during Q3 of the current year. All these products were launched with the innovative i-Gen6 (Mid-NOx) technology which have been very well received by customers, helping the company increase its market presence.

The global automotive industry has been affected by the constraints in supply of Electronic Control Units (ECUs) owing to the non-availability of Semi-Conductors. Indian automotive industry has been no exception.  The Company's management is closely monitoring the situation as this can have an impact on future volumes if the constraints do not ease.

Mr. Vipin Sondhi, MD & CEO, Ashok Leyland Limited said "We have seen a marked improvement in the Company's performance in this quarter. All our newly launched products and our innovative i-Gen6 (Mid-NOx)

BS6 solution have proved their mettle across the markets. Another innovation, the "Digital Nxt", an industry-first combination of three innovative digital solutions has become extremely popular with fleet owners with more and more users getting on to the platform, deriving benefits of our digital Apps. On the cost front, our focus on controlling costs has paid dividends for us this quarter".

Mr. Gopal Mahadevan, Director & CFO, Ashok Leyland added, "The performance for this quarter which resulted in a positive EBITDA of 5.3 % was made possible owing to the revenue enhancement and operational efficiency initiatives of the company during challenging times. LCV, After Market, Defence and Power Solutions businesses have performed really well during the quarter. The focus on resetting the operating cost to revenues and material cost optimization will continue."