- Ashok Leyland posts record turnover and profits.
- Standalone annual revenue grows 39% to Rs. 18,822 crores,
- Operating PAT (before exceptions) at Rs 1111 cr.
Ashok Leyland, flagship of the Hinduja Group, registered a 39% increase in turnover at Rs. 18,822 crores, as against Rs. 13,562 crores, same period last year. Profit After Tax before exceptions stood at Rs 1,111 cr as against Rs 233.9 cr, up 375%. Profit After Tax after exceptions for the year stood at Rs. 722 crores, as against Rs. 335 crores, recording a growth of 115%.
Increase in sales volume, continued reduction in operating costs and a good product mix, helped Earnings before Interest, Tax and Depreciation (EBITDA) grow to Rs. 2,166 crores, at 11.5% of total revenue, against Rs. 1,027 crores, 7.6% of total revenue in the previous year.
For Q4 FY 2015-16, Profit After Tax before exceptions stood at Rs. 456 cr as against Rs. 238 crores, same period last year, registering a growth of 91% while revenues increased 32% to Rs. 5,955 crores, against Rs. 4,506 crores, same period last year.
EBITDA for Q4 FY 2015-16, (earnings before interest, tax and depreciation) was Rs. 753 crores, 12.6% of total revenue, against Rs. 457 crores, 10.1% for Q4 last year.
The Company’s Domestic Medium and Heavy Commercial Vehicles (M&HCV) Sale Volumes for the year was 98,809 vehicles (66,442 nos.) with a growth in market position across the country and segments. Light Commercial Vehicles (LCV) was 30,695 (27,242 nos.), while international volumes for MHCVs de-grew by 2% owing to slowness in some markets. Defence vehicles registered healthy growth.
The Debt Equity ratio as at the end of the year was 0.24 :1 as against 0.75:1 last year.
The results for the year also included exceptional provisions (net) of Rs 389 crores. These included provisions for impairment in investments in certain Joint Ventures as well as overseas subsidiaries. This is in line with the Company’s strategy of reviewing its portfolio of investments and rationalizing the same to drive focus on the core business.
The board has recommended a dividend of 95% per share translating to 95 paise per share.
Speaking on the occasion, Mr. Vinod K. Dasari, Managing Director, Ashok Leyland, said, “It has been a very successful and a fulfilling year for us. The investment we made in new products, the expansion of network as well as continued efforts in driving operational efficiency has helped us maintain the growth momentum. We are now poised to seize the opportunity the market presents in the immediate future.
All this has been achieved with the valued support of our suppliers and dealers who have taken us from strength to strength. While we significantly improved our presence across the country the year also witnessed our expanded presence across the globe.
In line with our brand promise and business philosophy of Aapki Jeet, Hamari Jeet, we have maintained our focus on customer and stakeholder value creation.
We will continue to invest in new products, technologies as well as enhance our domestic and global network further in pursuit of profitable growth.
We are reviewing our portfolio of investments and are rationalizing them. In the current year we have decided to impair some of our investments and this is in line with our strategy of increasing our focus on the core business as we move forward. We would be completing this rationalization process by end of the FY 17. The focus of the company would continue to pursue the path of profitable growth.”