Ashok Leyland, flagship of the Hinduja Group closed FY 17 with record revenues of Rs 21,332 Cr and registered a 214 % jump in Net Profits. It posted a 11% EBITDA margin for FY 2016-17, this is the 9th straight quarter of double digit EBITDA performance for the company. It also increased its all India market share to 33.8%, a gain of 1.1% over last year. The Market share increase is across all segments and regions.
The total MHCV industry volume for FY 2016-17 was 3,02,529 units as against 3,02,397 units in the same period last year, the market has remained flat. However, Ashok Leyland volumes has shown a growth of 4%; 1,02,313 for FY 2016-17 as against 98,809 for FY 2015-16, resulting in an increase in market share of 1.1%.
Key Highlights include:
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Launched six new products across different segments helped us gain market share
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Launched the country’s first Electric Bus. Ramping up capacity for electric vehicles
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Awarded the Deming Prize for our Pantnagar plant – the highest recognition of quality worldwide
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Expanded the network to 2678 touch points in FY17 to provide timely service and parts
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Recognized as one of the top 40 Brands in India
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Awarded “AA” Credit Rating: Highest in 12 years
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Rated highest on dealer satisfaction for MHCV by JD Power
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Won “School Bus of the Year” Award for Sunshine Bus by Apollo CV
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Won 19 Defence tenders
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Grew Aftermarket revenues by 31%
The results include the financial performance of HFL for the period 1st October 2016 to 31st March 2017. The tax savings from the merger of HFL added Rs. 324 Crores to the PAT.
Results for FY 2016-17:
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Revenues increased by 7% to Rs. 21,332 Cr against Rs. 19,993 Cr, during same period last year
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Net profit stood at Rs. 1,223. Cr, against Rs. 390 Cr, same period last year(after exceptional items)
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EBITDA for the year was 11% against 11.9% in the same period last year
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Total MHCV Volumes including exports increased by 3% to 1,13,296 nos.
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Volume for LCV increased by 4% to 31,770 nos.
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Board has recommended a Dividend of Rs. 1.56 per share (156%) for FY 2016-17 subject to the approval of shareholders.
Results for Q4 2016-17:
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Revenue increased by 13% to Rs. 7,057 Cr, against Rs. 6,237 Cr, same period last year.
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Net profit stood at Rs. 476 Cr against a loss of Rs.141 Cr, same period last year(after exceptional items)
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Total MHCV Volumes including exports increased by 10% to 38,643 nos.
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Volume for LCV increased by 3% to 8,978 nos against 8,745 nos during same period last year.
Vinod K. Dasari, Managing Director, Ashok Leyland Limited said “The highlight for us this year is the growth in profits and our pan India market share. Our continued focus on controlling costs has paid rich dividends and helped us achieve a double-digit EBITDA for the 9th straight quarter. We launched BS4 engines with the AL’s iEGR technology which is best suited for our customers, especially in developing economies. We are confident that this unique technology will help enhance profits of our customers and grow our share.
We are happy to state that we are slowly but surely turning around the operations of HFL and the company has become EBITDA positive for last six months.”
Gopal Mahadevan, CFO, Ashok Leyland added, “While we will pursue growth, we want to do it profitably and the team continues its focus on operating costs and margins. Ashok Leyland continues to be the most profitable CV company in India. Debt equity is reduced to 0.1 and our credit rating has been upgraded to ‘AA’.”
