For the quarter ending Sept 2021, consolidated Net sales (including other operating income) of Ashok Leyland has increased 44.37% to Rs 5562.47 crore compared to quarter ended sept 2020. Sales of Commercial Vehicle segment has gone up 55.18% to Rs 4,787.71 crore (accounting for 86.07% of total sales). Sales of Financial Service segment has gone up 0.93% to Rs 774.76 crore (accounting for 13.93% of total sales).
Profit before interest, tax and other unallocable items (PBIT) reported loss of Rs -14.03 crore compared to loss / profit of Rs. -7.99 Cr.PBIT of Commercial Vehicle segment rose 9.08% to Rs -135.77 crore (accounting for 967.71% of total PBIT). PBIT of Financial Service segment rose 4.52% to Rs 121.74 crore (accounting for -867.71% of total PBIT).
PBIT margin of Commercial Vehicle segment rose from negative 4.03% to negative 2.84%. PBIT margin of Financial Service segment rose from 15.17% to 15.71%. Overall PBIT margin fell from 0.21% to -0.25%.
Operating profit margin has declined from 15.05% to 10.35%, leading to 0.68% decline in operating profit to Rs 575.95 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 52.67% to 60.70%. Purchase of finished goods cost fell from 5.57% to 3.74%. Employee cost decreased from 12.80% to 11.90%. Other expenses fell from 14.49% to 12.78%.
Other income fell 1.37% to Rs 24.44 crore. PBIDT fell 0.70% to Rs 600.39 crore. Provision for interest fell 2.25% to Rs 478.74 crore. Loan funds rose to Rs 25,084.22 crore as of 30 September 2021 from Rs 16,736.93 crore as of 30 September 2020. Inventories rose to Rs 2,439.61 crore as of 30 September 2021 from Rs 1,678.73 crore as of 30 September 2020. Sundry debtors were higher at Rs 2,092.04 crore as of 30 September 2021 compared to Rs 1,424.17 crore as of 30 September 2020. Cash and bank balance rose to Rs 1,721.75 crore as of 30 September 2021 from Rs 1,409.96 crore as of 30 September 2020. Investments rose to Rs 2,098.35 crore as of 30 September 2021 from Rs 1,150.38 crore as of 30 September 2020 .
PBDT stood at Rs 121.65 crore compared to loss of Rs 109.13 crore. Provision for depreciation rose 7.56% to Rs 206.94 crore. Fixed assets declined from Rs 7,590.13 crore as of 30 September 2020 to Rs 7,329.02 crore as of 30 September 2021. Intangible assets increased from Rs 1,115.56 crore to Rs 1,240.77 crore.
Loss before tax up 10.07% to Rs -85.29 crore. Share of profit/loss was 722.22% higher at Rs 0.74 crore. Provision for tax was credit of Rs 0.77 crore, compared to debit of Rs 17.13 crore. Effective tax rate was 0.91% compared to negative 21.66%.
Minority interest decreased 25.60% to Rs 19.88 crore. Net loss attributable to owners of the company decreased 15.88% to Rs -103.43 crore.
Equity capital stood at Rs 293.55 crore as of 30 September 2021 to Rs 293.55 crore as of 30 September 2020. Per share face Value remained same at Rs 1.00.
Promoters' stake was 51.12% as of 30 September 2021 ,compared to 51.12% as of 30 September 2020 . Promoters pledged stake was 18.44% as of 30 September 2021 ,compared to 10.88% as of 30 September 2020 .
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Ashok Leyland has increased 80.12% to Rs 9650.36 crore. Sales of Commercial Vehicle segment has gone up 109.66% to Rs 8,097.79 crore (accounting for 83.91% of total sales). Sales of Financial Service segment has gone up 3.85% to Rs 1,553.14 crore (accounting for 16.09% of total sales).
Profit before interest, tax and other unallocable items (PBIT) reported loss of Rs -272.36 crore compared to loss / profit of Rs. -473.44 Cr.PBIT of Commercial Vehicle segment fell 25.58% to Rs -506.71 crore (accounting for 186.04% of total PBIT). PBIT of Financial Service segment rose 12.96% to Rs 234.35 crore (accounting for -86.04% of total PBIT).
PBIT margin of Commercial Vehicle segment rose from negative 17.63% to negative 6.26%. PBIT margin of Financial Service segment rose from 13.87% to 15.09%. Overall PBIT margin rose from 8.84% to -2.82%.
Operating profit margin has declined from 13.11% to 9.46%, leading to 30.07% rise in operating profit to Rs 913.24 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 46.00% to 58.69%. Purchase of finished goods cost fell from 5.42% to 4.37%. Employee cost decreased from 17.88% to 13.06%. Other expenses fell from 17.91% to 14.47%.
Other income fell 21.04% to Rs 39.82 crore. PBIDT rose 26.64% to Rs 953.06 crore. Provision for interest fell 3.51% to Rs 940.54 crore. Loan funds rose to Rs 25,084.22 crore as of 30 September 2021 from Rs 16,736.93 crore as of 30 September 2020. Inventories rose to Rs 2,439.61 crore as of 30 September 2021 from Rs 1,678.73 crore as of 30 September 2020. Sundry debtors were higher at Rs 2,092.04 crore as of 30 September 2021 compared to Rs 1,424.17 crore as of 30 September 2020. Cash and bank balance rose to Rs 1,721.75 crore as of 30 September 2021 from Rs 1,409.96 crore as of 30 September 2020. Investments rose to Rs 2,098.35 crore as of 30 September 2021 from Rs 1,150.38 crore as of 30 September 2020 .
PBDT stood at Rs 12.52 crore compared to loss of Rs 222.15 crore. Provision for depreciation rose 10.74% to Rs 418.36 crore. Fixed assets declined from Rs 7,590.13 crore as of 30 September 2020 to Rs 7,329.02 crore as of 30 September 2021. Intangible assets increased from Rs 1,115.56 crore to Rs 1,240.77 crore.
Loss before tax has fallen 32.35% to Rs -405.84 crore. Share of profit/loss was 77.08% higher at Rs -0.66 crore. Extraordinary items were increased to Rs -1.45 crore. Provision for tax was credit of Rs 72.22 crore, compared to credit of Rs 121.12 crore. Effective tax rate was 17.70% compared to 19.98%.
Minority interest decreased 11.54% to Rs 41.56 crore. Net profit attributable to owners of the company increased 29.08% to Rs -377.29 crore.
Equity capital stood at Rs 293.55 crore as of 30 September 2021 to Rs 293.55 crore as of 30 September 2020. Per share face Value remained same at Rs 1.00.
Promoters' stake was 51.12% as of 30 September 2021 ,compared to 51.12% as of 30 September 2020 . Promoters pledged stake was 18.44% as of 30 September 2021 ,compared to 10.88% as of 30 September 2020 .
Cash flow from operating activities has turned positive Rs 391.06 crore for YTD ended September 2021 from negative Rs 778.70 crore for YTD ended September 2020. Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 211.73 crore, compared to Rs 294.09 crore during the YTD ended September 2020.
Full year results analysis.
Net sales (including other operating income) of Ashok Leyland has declined 11.38% to Rs 19454.1 crore. Sales of Commercial Vehicle segment has gone down 13.32% to Rs 16,308.09 crore (accounting for 83.82% of total sales). Sales of Financial Service segment has gone up 0.35% to Rs 3,147.26 crore (accounting for 16.18% of total sales). Inter-segment sales rose Rs 0.07 crore to Rs 1.25 crore.
Profit before interest, tax and other unallocable items (PBIT) has slumped 92.50% to Rs 61.31 crore. PBIT of Commercial Vehicle reported loss of Rs 371.36 crore compared to profit of Rs 337.83 crore. PBIT of Financial Service segment fell 9.88% to Rs 432.67 crore (accounting for 705.71% of total PBIT).
PBIT margin of Commercial Vehicle segment fell from 1.80% to 2.28%. PBIT margin of Financial Service segment fell from 15.31% to 13.75%. Overall PBIT margin fell from 3.73% to 0.32%.
Operating profit margin has declined from 14.73% to 12.66%, leading to 23.84% decline in operating profit to Rs 2,462.44 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 54.08% to 58.89%. Purchase of finished goods cost fell from 4.24% to 4.04%. Employee cost increased from 10.61% to 10.81%. Other expenses fell from 15.41% to 13.94%.
Other income rose 21.64% to Rs 131.16 crore. PBIDT fell 22.37% to Rs 2593.6 crore. Provision for interest rose 5.49% to Rs 1900.64 crore. Loan funds rose to Rs 18,351.42 crore as of 31 March 2021 from Rs 16,330.90 crore as of 31 March 2020. Inventories rose to Rs 2,495.85 crore as of 31 March 2021 from Rs 1,536.39 crore as of 31 March 2020. Sundry debtors were higher at Rs 3,020.91 crore as of 31 March 2021 compared to Rs 1,496.16 crore as of 31 March 2020. Cash and bank balance declined from Rs 2,235.30 crore as of 31 March 2020 to Rs 1,778.53 crore as of 31 March 2021. Investments rose to Rs 1,095.63 crore as of 31 March 2021 from Rs 960.34 crore as of 31 March 2020 .
PBDT fell 54.99% to Rs 692.96 crore. Provision for depreciation rose 11.42% to Rs 835.62 crore. Fixed assets increased to Rs 7,578.99 crore as of 31 March 2021 from Rs 7,489.26 crore as of 31 March 2020. Intangible assets increased from Rs 1,115.56 crore to Rs 1,240.77 crore.
Profit before tax reported loss of Rs 142.66 crore compared to profit of Rs 789.55 crore. Provision for tax was expense of Rs 2.52 crore, compared to Rs 279.36 crore. Effective tax rate was negative 3.76% compared to 37.79%.
Minority interest decreased 22.33% to Rs 95.63 crore.
Equity capital stood at Rs 293.55 crore as of 31 March 2021 to Rs 293.55 crore as of 31 March 2020. Per share face Value remained same at Rs 1.00.
Promoters' stake was 51.12% as of 31 March 2021 ,compared to 51.12% as of 31 March 2020 . Promoters pledged stake was 17.62% as of 31 March 2021 ,compared to 9.26% as of 31 March 2020 .
Cash flow from operating activities has turned negative Rs 1,065.13 crore for year ended March 2021 from positive Rs 383.18 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 751.67 crore, compared to Rs 1,349.08 crore during the year ended March 2020.
Other Highlights
In Q2 FY22, Ashok Leyland's domestic LCV volumes rose by 22% to 13328 units, Export volumes (MHCV & LCV) icreased by 49% to 2227 units compared to Q2 FY21.
Net Cash generated for the quarter was Rs 1063 crore.
Management commentary: Mr. Vipin Sondhi, MD & CEO, Ashok Leyland, said The industry has seen signs of volume recovery in Q2 FY'22 over the same period last year, and we remain confident and optimistic about the future. The economy is showing signs of return to growth and we at Ashok Leyland will continue to build competitive products and organisational capabilities for future growth. Our focus will be to continuously improve our market share and gain it profitably and sustainably. Our global market expansion strategy is also in place, as we continue to focus on achieving our vision of being among the top 10 global CV makers. I am happy with the progress made on the EV front by Switch. In addition, our continued focus will be on ensuring that the three pillars of ESG, Environmental, Social, and Governance are cornerstones of our business processes and help us achieve our sustainability agenda.
Mr. Gopal Mahadevan, Director & CFO, Ashok Leyland, added, We have been driving a portfolio approach to our business, and apart from our core business, our other businesses like Aftermarket, Power solutions, Defence and Customer Solutions, have contributed increasingly to our revenue. We have generated close to INR 1063 Cr in cash this quarter owing to improved working capital, and we will continue to focus on driving operational efficiency.
Ashok Leyland : Consolidated Results
| Quarter ended | Year to Date | Year ended |
| Particulars | 202109 | 202009 | Var.(%) | 202109 | 202009 | Var.(%) | 202103 | 202003 | Var.(%) |
| Net Sales (including other operating income) | 5,562.47 | 3,852.84 | 44.37 | 9,650.36 | 5,357.82 | 80.12 | 19,454.10 | 21,951.27 | -11.38 |
| OPM (%) | 10.35 | 15.05 | -470 bps | 9.46 | 13.11 | -364 bps | 12.66 | 14.73 | -207 bps |
| OP | 575.95 | 579.87 | -0.68 | 913.24 | 702.14 | 30.07 | 2,462.44 | 3,233.36 | -23.84 |
| Other Inc. | 24.44 | 24.78 | -1.37 | 39.82 | 50.43 | -21.04 | 131.16 | 107.83 | 21.64 |
| PBIDT | 600.39 | 604.65 | -0.7 | 953.06 | 752.57 | 26.64 | 2,593.60 | 3,341.19 | -22.37 |
| Interest | 478.74 | 489.75 | -2.25 | 940.54 | 974.72 | -3.51 | 1,900.64 | 1,801.65 | 5.49 |
| PBDT | 121.65 | 114.9 | 5.87 | 12.52 | -222.15 | LP | 692.96 | 1,539.54 | -54.99 |
| Depreciation | 206.94 | 192.39 | 7.56 | 418.36 | 377.77 | 10.74 | 835.62 | 749.99 | 11.42 |
| PBT | -85.29 | -77.49 | -10.07 | -405.84 | -599.92 | 32.35 | -142.66 | 789.55 | PL |
| Share of Profit/(Loss) from Associates | 0.74 | 0.09 | 722.22 | -0.66 | -2.88 | 77.08 | -0.5 | 2.89 | PL |
| PBT before EO | -84.55 | -77.4 | -9.24 | -406.5 | -602.8 | 32.56 | -143.16 | 792.44 | PL |
| EO Income | 0.23 | -1.7 | LP | -1.45 | -3.37 | 56.97 | 76.08 | -53.28 | LP |
| PBT after EO | -84.32 | -79.1 | -6.6 | -407.95 | -606.17 | 32.7 | -67.08 | 739.16 | PL |
| Taxation | -0.77 | 17.13 | LP | -72.22 | -121.12 | 40.37 | 2.52 | 279.36 | -99.1 |
| PAT | -83.55 | -96.23 | 13.18 | -335.73 | -485.05 | 30.78 | -69.6 | 459.8 | PL |
| Minority Interest (MI) | 19.88 | 26.72 | -25.6 | 41.56 | 46.98 | -11.54 | 95.63 | 123.13 | -22.33 |
| Net profit | -103.43 | -122.95 | 15.88 | -377.29 | -532.03 | 29.08 | -165.23 | 336.67 | PL |
| P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - |
| Net profit after discontinued operations | -103.43 | -122.95 | 15.88 | -377.29 | -532.03 | 29.08 | -165.23 | 336.67 | PL |
| EPS (Rs)* | -0.35 | -0.34 | -4.86 | -1.28 | -1.8 | 28.9 | -1.16 | 1.23 | PL |
* EPS is on current equity of Rs 293.55 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database |
Ashok Leyland : Consolidated Segment Results
| Quarter ended | Year to Date | Year ended |
| % of (Total) | 202109 | 202009 | Var.(%) | % of (Total) | 202109 | 202009 | Var.(%) | % of (Total) | 202103 | 202003 | Var.(%) |
| Sales | | | | |
| Commercial Vehicle | 86.07 | 4,787.71 | 3,085.20 | 55.18 | 83.91 | 8,097.79 | 3,862.32 | 109.66 | 83.82 | 16,308.09 | 18,814.93 | -13.32 |
| Financial Service | 13.93 | 774.76 | 767.64 | 0.93 | 16.09 | 1,553.14 | 1,495.50 | 3.85 | 16.18 | 3,147.26 | 3,136.41 | 0.35 |
| Total Reported Sales | 100 | 5,562.47 | 3,852.84 | 44.37 | 100 | 9,650.93 | 5,357.82 | 80.13 | 100 | 19,455.35 | 21,951.34 | -11.37 |
| Less: Inter segment revenues | | 0 | 0 | - | | 0.57 | 0 | | 1.25 | 0.07 | 1,685.71 | |
| Net Sales | 100 | 5,562.47 | 3,852.84 | 44.37 | 100 | 9,650.36 | 5,357.82 | 80.12 | 100 | 19,454.10 | 21,951.27 | -11.38 |
| PBIT | | | | |
| Commercial Vehicle | 967.71 | -135.77 | -124.47 | 9.08 | 186.04 | -506.71 | -680.9 | -25.58 | -605.71 | -371.36 | 337.83 | PL |
| Financial Service | -867.71 | 121.74 | 116.48 | 4.52 | -86.04 | 234.35 | 207.46 | 12.96 | 705.71 | 432.67 | 480.08 | -9.88 |
| Total PBIT | 100 | -14.03 | -7.99 | 75.59 | 100 | -272.36 | -473.44 | -42.47 | 100 | 61.31 | 817.91 | -92.5 |
| Less : Interest | | 95.7 | 94.28 | 1.51 | | 173.3 | 176.91 | -2.04 | | 335.13 | 136.19 | 146.08 |
| Add: Other un-allcoable | | 25.41 | 23.17 | 9.67 | | 37.71 | 44.18 | -14.64 | | 206.74 | 57.44 | 259.92 |
| PBIT Margin(%) | | | | |
| Commercial Vehicle | | -2.84 | -4.03 | 119.86 | | -6.26 | -17.63 | 1,137.19 | | -2.28 | 1.8 | -407.27 |
| Financial Service | | 15.71 | 15.17 | 53.95 | | 15.09 | 13.87 | 121.65 | | 13.75 | 15.31 | -155.92 |
| PBT | 100 | -84.32 | -79.1 | 6.6 | 100 | -407.95 | -606.17 | -32.7 | 100 | -67.08 | 739.16 | PL |
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