Ashok Leyland narrows net loss to Rs 83.6 cr in September quarter

Commercial vehicles maker Ashok Leyland, the Hinduja group's flagship firm, on Friday reported narrowing of its consolidated net loss to Rs 83.65 crore in the second quarter ended September 30, riding on robust sales.

The company had posted a consolidated net loss of Rs 96.23 crore in the corresponding period last fiscal, Ashok Leyland said in a regulatory filing.

Its consolidated revenue from operations stood at Rs 5,562.47 crore as against Rs 3,835.85 crore in the year-ago quarter, it added.

The company said its total expenses stood at Rs 5,672.2 crore in the second quarter this fiscal, up from Rs 3,955.11 crore in the corresponding period a year ago.

The cost of materials consumed were also higher at Rs 3,213.61 crore as against Rs 2,109.78 crore in the year-ago period.

Ashok Leyland said its domestic medium and heavy commercial vehicle (MHCV) sales were at 11,988 units in the second quarter, against 6,994 units in the year-ago period, a growth of 71 per cent.

Sales of light commercial vehicles (LCVs) in Q2 this fiscal were at 13,328 units as compared with 10,952 units, up 22 per cent.

Exports of MHCV and LCV during the period stood at 2,227 units as against 1,491 units in the same quarter last fiscal, a growth of 49 per cent, the company said.

Commenting on the quarterly performance, Ashok Leyland Managing Director and CEO Vipin Sondhi said, "The industry has seen signs of volume recovery in Q2 FY22 over the same period last year, and we remain confident and optimistic about the future."

Stating that the economy is showing signs of return to growth, he said, "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."

Sondhi further said, "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."

On the outlook, the company said its AVTR truck range saw strong demand and is expected to further improve, mirroring the expected increase in 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.

"Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV (intermediate commercial vehicle) and LCV truck volumes," it added.

Other businesses like defence and after-market continue to contribute strongly to the topline (revenue) of the company, it said adding that Switch Mobility, its electric vehicle arm, continues to grow its order book in India, the UK and EU.

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