Check out the share trend of Ashok Leyland Ltd.
Ashok Leyland Ltd. – Highlights
- The shares of Ashok Leyland Ltd., was trading at Rs.123.60, up by 4.6% in today’s trading session.
- The stock price has increased by 131.34% in last one year, while the benchmark index S&P BSE Sensex has increased by 51.90%.
- The reason behind the up move in the stock was after the company reported market share gain in the march ended quarter.
- The flagship company of Hinduja Group, Ashok Leyland’s market share has improved from 28.1 in December 2020 quarter (Q3FY21) to 28.9 % in the March 2021 quarter (Q4FY21).
- “Sequentially, over Q3FY21, Ashok Leyland’s medium and heavy commercial vehicles (MHCV) truck volumes increased by 57% in Q4FY21, outpacing industry growth of 53%, resulting in market share improvement during the quarter.”
- The company said in a press release that “MHCV truck volumes have increased by 111% year on year (YoY), which is faster than the industry’s rate of growth”.
- Revenue increased by 82 % year on year to Rs 7,000 crore in Q4FY21, compared to Rs 3,838 crore in Q4FY20. The company earned Rs 241.17 crore in profit after tax (PAT) compared to a loss of Rs 57.32 crore in the year-ago quarter. Ebitda margin increased to 7.6 % from 4.8 % the previous year.
- Revenue for the full year was Rs 15301 crore, down from Rs 17467 crore in the same period last year. The loss after tax was Rs 314 crore, compared to a profit after tax of Rs 240 crore the previous year. Full-year EBITDA was 3.5 %, down from 6.7 % the previous year. For the entire year, the total MHCV industry volume decreased by 28%.
- “We have seen recovery in Q4FY21 and overall performance has been better,” said Vipin Sondhi, MD & CEO of Ashok Leyland Limited. However, with the sudden onset of the second wave, the industry faces new challenges. This time, we’re better prepared. The fact that India’s GDP is expected to grow at 9.5 % in FY22 aligns well for the CV industry. We remain rock solid and resilient at Ashok Leyland, driven by our Newgen products and a talented team, and we are confident that we will emerge stronger once demand picks up. This will assist us in achieving profitable growth.”
- Going forward, the company anticipates that good industry opportunities will help it grow its exports, defence, power solutions, light commercial vehicles (LCV), and parts business, even as it expands the reach and products of its core MHCV business. According to the company, emerging businesses such as electric vehicles (EV) and customer solutions (CSB) will help to complement the core business.
- The company’s board of directors has declared a final dividend of Rs 0.60 per equity share with a face value of Re 1 each. The board of directors of the company has decided to hold its annual general meeting (AGM) on September 8, 2021.
- Ashok Leyland, is India’s second largest manufacturer of commercial vehicles, the world’s third largest manufacturer of buses, and the tenth largest manufacturer of trucks. The company is in the business of producing commercial vehicles and related components. The company’s product line includes trucks ranging from 1T GVW (Gross Vehicle Weight) to 55T GTW (Gross Trailer Weight), buses ranging from 9 to 80 seats, vehicles for defence and special applications, and diesel engines for industrial, genset, and marine applications.
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Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purpose. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.
