Ashok Leyland posts Revenue of Rs.6325 crores;Continues to maintain double digit operating margin-Cumulative revenue up 15%; Profit up 36%

Chennai, February 14, 2019: Ashok Leyland, flagship of the Hinduja Group, reported a revenue of Rs.6325 crores in Q3. YTD revenues touched Rs. 20,209 crores up 15% over corresponding period last year.

The Company achieved an EBITDA margin of 10.3% in Q3.  The Company has posted consistent operating margins, despite market volatility, with double-digit EBITDA margins in 15 of the past 16 quarters.

Results for Q3 FY 2018-19: (as against same period last year)

–          Revenues Rs.6325Cr, as against Rs.7191Cr

–          EBITDA Rs.650Cr, as against Rs.839Cr

–          Net Profit Rs.381Cr, as against Rs.485Cr

Results for YTD Q3 FY 2018-19:

–          Revenues increased by 15% to Rs.20209Cr, as against Rs.17576Cr

–          EBITDA increased by 17% to Rs.2150Cr, as against Rs.1838Cr

–          Net Profit increased by 36% to Rs.1330Cr, as against Rs.975Cr

Mr. Vinod K. Dasari, Managing Director, Ashok Leyland Limited said “We are proud to have achieved BS6 across the entire range of engines on our test beds.Coupled with the modularity of vehicles we are planning from 2020, it presents exciting opportunities for differentiating Ashok Leyland’s offerings to the customers. Equally, we hope that post elections, there will be greater spending on Defence as we will then see orders for the many tenders won by us over last couple of years. Lastly, we are excited about the LCV business. Now that the LCV business is merged with Ashok Leyland, we will offer the entire range of LCVs from 2020. This will help complete the range and Ashok Leyland will then be able to offer a full range of CVs which are also Left Hand Drive (LHD) compliant, giving a boost to exports. Equally in near term, I expect gains from the BS6 pre-buy in next fiscal.”

Mr. Gopal Mahadevan, CFO, Ashok Leyland added, “Total industry volume (TIV) for the quarter was lower by 7% owing to the high base in last year. If you were to look at the cumulative growth in TIV till Dec ’18 was 25% which is quite significant. LCV business is gaining momentum with market share in Dost segment touching 19% in Q3. Our financial performance has been satisfying given the twin challenges of pricing pressure and higher input costs as we continue to post double digit EBITDA margins. Our strong balance sheet position continues, and we are preparing for growth next year”.