Ashok Leyland Q2 FY21 Results

Net debt in Q2 reduces from Rs. 4284 Cr to Rs. 3076 Cr.

Posts a positive EBITDA of 2.8%

Chennai, November 6, 2020: Ashok Leyland, flagship of the Hinduja Group reported a 3.4 time increase in sequential quarter revenues in Q2 FY21. The revenues for the quarter stood at Rs. 2837 crores as against Rs. 651 crores in Q1 FY21 and Rs. 3929 crores in Q2 FY20. The Company reported a positive EBITDA of 2.8% for Q2 FY21 against an EBITDA of -51.2% in Q1 FY21.

The company also generated Rs 1208 Crores of cash from operations after capital expenditure and investments, which has helped the company bring down net debt to Rs 3076 Crores from Rs 4,284 Crores in Q1 FY21 further strengthening the balance sheet of the company. Debt equity has reduced from 0.6 times at the end of June ’20 to 0.5 times as of end of Sep ’20.

Following the successful launch of its Modular Platform AVTR, the company continued its planned product launches of the Bada Dost in the Phoenix Platform in the LCV segment and Boss LE and LX in the ICV segment. All these products were launched with the innovative I-gen6 (Mid-NOx) technology powertrain. They have been very well received by customers and has helped the company increase its market presence.  Going forward we expect Q3 and Q4 to be much better quarters.

Mr. Vipin Sondhi, MD & CEO, Ashok Leyland Limited said “While the challenges in the market due to COVID-19 continue, the company has seen a marked improvement in the Company’s performance in this quarter. The performance of our newly launched AVTR platform in the M&HCV segment and Bada Dost in the LCV segment gives us immense confidence that we are on the right track. Our innovative I-gen6 (Mid-NOx) BS6 solution has received a very positive response from customers and our teams have worked relentlessly to deliver on our promise of “Aapki Jeet. Hamari Jeet”. As we go forward our focus on customer acquisition and network expansion will continue.”

Mr. Gopal Mahadevan, Whole Time Director & CFO, Ashok Leyland added, “The performance for this quarter which resulted in a positive EBITDA of 2.8% was made possible owing to the revenue enhancement and operational efficiency initiatives of the company during challenging times. All the a-cyclical businesses including LCV, After Market, Defence and Power Solutions have performed really well during the quarter. Focus on operating cost and material cost optimization will continue, even as we pursue growth.”