Ashok Leyland ends FY21 in the red even as Q4 net grows 550%

Mumbai: Commercial vehicles major reported a 550% increase in consolidated profit for the quarter ending 31 March as sales more than doubled, but the company was in the red for the complete fiscal year.

The company reported a profit of Rs 377 crore for the quarter under consideration against Rs 58 crore in the corresponding quarter last year.

Consolidated revenue improved by 60% to Rs 8,142 crore for the quarter. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 44% year-on-year to Rs 1,013 crore. EBITDA margin, however, narrowed by 141 basis points to 12.4%.

For the complete financial year FY21, consolidated revenue was at Rs 19,454 crore, 11% lower than the previous year. Subsequently the company reported a consolidated loss of Rs 70 crore as against a profit of Rs 460 crore in FY20.

The company declared a dividend of Rs 0.6 per share. The stock of Ashok Leyland declined 0.67% to close at Rs 118.3 on the BSE on Thursday against a 0.28% gain in the S&P BSE Auto Index.

“We have seen recovery in Q4 FY’21 and the overall performance has been better. However, with the sudden onset of the second wave, the challenges for the industry continue,” said Vipin Sondhi, MD & CEO Ashok Leyland. “We are better prepared this time.”

The company said that going forward it expects good opportunities to continue to grow the exports, defence, , light commercial vehicles (LCV) and parts business even as it expands the reach and products of the core medium and heavy commercial vehicles (MHCV) business.

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