Capitaline

Results 06-Feb-24

Analysis

Ashok Leyland

OPM jumped 475 bps

For the quarter ending Dec 2023, consolidated Net sales (including other operating income) of Ashok Leyland has increased 6.66% to Rs 11092.7 crore compared to quarter ended Dec 2022. Sales of Commercial Vehicle segment has gone up 4.15% to Rs 9,853.52 crore (accounting for 88.83% of total sales). Sales of Financial Service segment has gone up 32.02% to Rs 1,239.28 crore (accounting for 11.17% of total sales). Inter-segment sales came down from Rs 0.28 crore to Rs 0.10 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 53.44% to Rs 1,049.21 crore. PBIT of Commercial Vehicle segment rose 63.15% to Rs 845.84 crore (accounting for 80.62% of total PBIT). PBIT of Financial Service segment rose 23.02% to Rs 203.37 crore (accounting for 19.38% of total PBIT).

PBIT margin of Commercial Vehicle segment rose from 5.48% to 8.58%. PBIT margin of Financial Service segment fell from 17.61% to 16.41%. Overall PBIT margin rose from 6.57% to 9.46%.

Operating profit margin has jumped from 12.93% to 17.68%, leading to 45.88% rise in operating profit to Rs 1,961.28 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.30% to 60.38%. Purchase of finished goods cost rose from 2.81% to 3.26%. Employee cost increased from 7.56% to 8.22%. Other expenses rose from 10.13% to 10.91%.

Other income fell 12.72% to Rs 26.75 crore. PBIDT rose 44.57% to Rs 1988.03 crore. Provision for interest rose 43.57% to Rs 782.73 crore.

PBDT rose 45.23% to Rs 1205.3 crore. Provision for depreciation rose 9.29% to Rs 240.92 crore.

Profit before tax grew 58.23% to Rs 964.38 crore. Share of profit/loss was 387.20% higher at Rs 6.09 crore. Extraordinary items were increased to Rs 13.25 crore. Provision for tax was expense of Rs 374.87 crore, compared to Rs 263.59 crore. Effective tax rate was 38.11% compared to 42.87%.

Minority interest increased 51.20% to Rs 48.64 crore. Net profit attributable to owners of the company increased 75.59% to Rs 560.21 crore.

Promoters’ stake was 51.11% as of 31 December 2023 ,compared to 51.11% as of 31 December 2022 . Promoters pledged stake was 15.04% as of 31 December 2023 ,compared to 19.04% as of 31 December 2022 .

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Ashok Leyland has increased 13.15% to Rs 32213.06 crore. Sales of Commercial Vehicle segment has gone up 11.52% to Rs 28,809.27 crore (accounting for 89.43% of total sales). Sales of Financial Service segment has gone up 29.15% to Rs 3,405.30 crore (accounting for 10.57% of total sales). Inter-segment sales rose Rs 0.78 crore to Rs 1.51 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 124.28% to Rs 2,820.12 crore. PBIT of Commercial Vehicle segment rose 178.26% to Rs 2,262.27 crore (accounting for 80.22% of total PBIT). PBIT of Financial Service segment rose 25.53% to Rs 557.85 crore (accounting for 19.78% of total PBIT).

PBIT margin of Commercial Vehicle segment rose from 3.15% to 7.85%. PBIT margin of Financial Service segment fell from 16.86% to 16.38%. Overall PBIT margin rose from 4.42% to 8.75%.

Operating profit margin has jumped from 11.01% to 16.58%, leading to 70.35% rise in operating profit to Rs 5,340.35 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.68% to 61.54%. Purchase of finished goods cost rose from 2.87% to 3.34%. Employee cost increased from 7.90% to 8.26%. Other expenses fell from 10.93% to 10.65%.

Other income rose 30.83% to Rs 104.87 crore. PBIDT rose 69.36% to Rs 5445.22 crore. Provision for interest rose 42.45% to Rs 2153.02 crore.

PBDT rose 93.23% to Rs 3292.2 crore. Provision for depreciation rose 8.25% to Rs 694.42 crore.

Profit before tax grew 144.55% to Rs 2,597.78 crore. Share of profit/loss was 302.66% higher at Rs 10.59 crore. Extraordinary items were decreased to Rs -17.98 crore. Provision for tax was expense of Rs 827.74 crore, compared to Rs 495.87 crore. Effective tax rate was 31.95% compared to 47.01%.

Minority interest increased 87.55% to Rs 132.54 crore. Net profit attributable to owners of the company increased 233.85% to Rs 1,630.11 crore.

Full year results analysis.

Net sales (including other operating income) of Ashok Leyland has increased 58.83% to Rs 41672.6 crore. Sales of Commercial Vehicle segment has gone up 65.17% to Rs 38,024.72 crore (accounting for 91.24% of total sales). Sales of Financial Service segment has gone up 13.45% to Rs 3,649.54 crore (accounting for 8.76% of total sales). Inter-segment sales rose Rs 0.80 crore to Rs 1.66 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 578.02% to Rs 2,475.92 crore. PBIT of Commercial Vehicle reported profit of Rs 1,819.40 crore compared to loss of Rs 82.46 crore. PBIT of Financial Service segment rose 46.67% to Rs 656.52 crore (accounting for 26.52% of total PBIT).

PBIT margin of Commercial Vehicle segment rose from negative 0.36% to 4.78%. PBIT margin of Financial Service segment rose from 13.91% to 17.99%. Overall PBIT margin rose from 1.39% to 5.94%.

Operating profit margin has jumped from 10.54% to 12.22%, leading to 84.18% rise in operating profit to Rs 5,092.90 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 63.46% to 66.83%. Purchase of finished goods cost fell from 3.61% to 2.78%. Employee cost decreased from 9.99% to 7.65%. Other expenses fell from 12.38% to 10.70%.

Other income rose 27.60% to Rs 110.77 crore. PBIDT rose 82.45% to Rs 5203.67 crore. Provision for interest rose 12.01% to Rs 2093.5 crore. Loan funds rose to Rs 31,160.93 crore as of 31 March 2023 from Rs 24,145.02 crore as of 31 March 2022. Inventories rose to Rs 3,440.43 crore as of 31 March 2023 from Rs 2,540.55 crore as of 31 March 2022. Sundry debtors were higher at Rs 4,187.36 crore as of 31 March 2023 compared to Rs 3,264.09 crore as of 31 March 2022. Cash and bank balance rose to Rs 2,186.72 crore as of 31 March 2023 from Rs 2,138.16 crore as of 31 March 2022. Investments rose to Rs 4,852.35 crore as of 31 March 2023 from Rs 2,652.12 crore as of 31 March 2022 .

PBDT rose 216.40% to Rs 3110.17 crore. Provision for depreciation rose 3.96% to Rs 900.22 crore. Fixed assets increased to Rs 7,221.84 crore as of 31 March 2023 from Rs 7,102.76 crore as of 31 March 2022. Intangible assets increased from Rs 1,031.83 crore to Rs 1,175.11 crore.

Profit before tax grew 1,788.20% to Rs 2,209.95 crore. Share of profit/loss was 42.95% higher at Rs 10.75 crore. Provision for tax was expense of Rs 906.93 crore, compared to Rs 85.86 crore. Effective tax rate was 39.98% compared to negative 43.02%.

Minority interest increased 65.19% to Rs 120.85 crore.

Equity capital increased from Rs 293.55 crore as of 31 March 2022 to Rs 293.61 crore as of 31 March 2023. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 51.11% as of 31 March 2023 ,compared to 51.12% as of 31 March 2022 . Promoters pledged stake was 19.04% as of 31 March 2023 ,compared to 17.84% as of 31 March 2022 .

Cash flow from operating activities has turned negative Rs 4,499.26 crore for year ended March 2023 from positive Rs 2,844.56 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 929.10 crore, compared to Rs 508.72 crore during the year ended March 2022.

Other Highlights

Company achieved CV volume of 1,38,416 units in the first nine months of the fiscal year.

Despite global headwinds, company achieved export volume of 3128 units in Q3 FY24 against 2936 units in the same period last year, registering a growth of 6.5%.

Company invested Rs 662 crore in Q3 FY24 into Optare PLC / Switch, as prospects of eLCVs and eBuses continue to strengthen.

Management Comments :
Mr. Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said “The present favourable market conditions are expected to hold in the foreseeable future. The steady progress we are making in sales volume and profitability is backed by products that deliver superior performance and customer value coupled with robust customer engagement across segments. A suite of new products in conventional and alternate propulsion technologies is slated for introduction progressively to consolidate our gains in the domestic market and facilitate our forays in overseas markets.”

Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added, “We have been able to achieve significant improvement in our Net Profits. The current quarter saw the confluence of good volumes, better price realization, and higher cost savings, thus helping us achieve better profitability. Other businesses such as After-market, Power Solutions and Defence also continue to strongly contribute to our top line and margins. On back of new differentiated products, deeper focus on cost optimization, and with continued discipline on pricing, we shall relentlessly pursue improvement in profitability. We remain confident and optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable.”

Ashok Leyland : Consolidated Results

	Quarter ended			Year to Date			Year ended
Particulars	202312	202212	Var.(%)	202312	202212	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	11,092.70	10,399.74	6.66	32,213.06	28,470.05	13.15	41,672.60	26,237.15	58.83
OPM (%)	17.68	12.93	475 bps	16.58	11.01	557 bps	12.22	10.54	168 bps
OP	1,961.28	1,344.47	45.88	5,340.35	3,134.98	70.35	5,092.90	2,765.24	84.18
Other Inc.	26.75	30.65	-12.72	104.87	80.16	30.83	110.77	86.81	27.60
PBIDT	1,988.03	1,375.12	44.57	5,445.22	3,215.14	69.36	5,203.67	2,852.05	82.45
Interest	782.73	545.19	43.57	2,153.02	1,511.37	42.45	2,093.50	1,869.05	12.01
PBDT	1,205.30	829.93	45.23	3,292.20	1,703.77	93.23	3,110.17	983.00	216.40
Depreciation	240.92	220.44	9.29	694.42	641.48	8.25	900.22	865.96	3.96
PBT	964.38	609.49	58.23	2597.78	1062.29	144.55	2209.95	117.04	1,788.20
Share of Profit/(Loss) from Associates	6.09	1.25	387.20	10.59	2.63	302.66	10.75	7.52	42.95
PBT before EO	970.47	610.74	58.90	2608.37	1064.92	144.94	2220.7	124.56	1,682.84
EO Income	13.25	4.06	226.35	-17.98	-10.1	-78.02	47.89	-324.15	LP
PBT after EO	983.72	614.8	60.01	2590.39	1054.82	145.58	2268.59	-199.59	LP
Taxation	374.87	263.59	42.22	827.74	495.87	66.93	906.93	85.86	956.29
PAT	608.85	351.21	73.36	1762.65	558.95	215.35	1361.66	-285.45	LP
Minority Interest (MI)	48.64	32.17	51.20	132.54	70.67	87.55	120.85	73.16	65.19
Net profit	560.21	319.04	75.59	1630.11	488.28	233.85	1240.81	-358.61	LP
P/(L) from discontinued operations net of tax	0	0	-	0	0	-	0	0	-
Net profit after discontinued operations	560.21	319.04	75.59	1630.11	488.28	233.85	1240.81	-358.61	LP
EPS (Rs)*	1.88	1.08	74.39	5.59	1.68	232.98	4.14	0.16	2,512.86

* EPS is on current equity of Rs 293.61 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Ashok Leyland : Consolidated Segment Results

	Quarter ended				Year to Date				Year ended
	% of (Total)	202312	202212	Var.(%)	% of (Total)	202312	202212	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
Commercial Vehicle	88.83	9,853.52	9,461.34	4.15	89.43	28,809.27	25,834.17	11.52	91.24	38,024.72	23,021.03	65.17
Financial Service	11.17	1,239.28	938.68	32.02	10.57	3,405.30	2,636.66	29.15	8.76	3,649.54	3,216.92	13.45
Total Reported Sales	100.00	11,092.80	10,400.02	6.66	100.00	32,214.57	28,470.83	13.15	100.00	41,674.26	26,237.95	58.83
Less: Inter segment revenues		0.10	0.28	-64.29		1.51	0.78	93.59		1.66	0.80	107.50
Net Sales	100.00	11,092.70	10,399.74	6.66	100.00	32,213.06	28,470.05	13.15	100.00	41,672.60	26,237.15	58.83
PBIT
Commercial Vehicle	80.62	845.84	518.45	63.15	80.22	2,262.27	813.02	178.26	73.48	1,819.40	-82.46	LP
Financial Service	19.38	203.37	165.32	23.02	19.78	557.85	444.41	25.53	26.52	656.52	447.63	46.67
Total PBIT	100.00	1,049.21	683.77	53.44	100.00	2,820.12	1,257.43	124.28	100.00	2,475.92	365.17	578.02
Less : Interest		111.58	104.93	6.34		327.21	275.30	18.86		376.74	334.94	12.48
Add: Other un-allcoable		46.09	35.96	28.17		97.48	72.69	34.10		169.41	-229.82	LP
PBIT Margin(%)
Commercial Vehicle		8.58	5.48	310.45		7.85	3.15	470.55		4.78	-0.36	514.30
Financial Service		16.41	17.61	-120.16		16.38	16.86	-47.32		17.99	13.91	407.43
PBT	100.00	983.72	614.80	60.01	100.00	2,590.39	1,054.82	145.58	100.00	2,268.59	-199.59	LP

Previous News

Sensex gains 235 pts, FMCG shares advance
( Market Commentary - Mid-Session 02-Sep-24 10:33 )

Ashok Leyland consolidated net profit rises 13.41% in the March 2024 quarter
( Results - Announcements 25-May-24 09:57 )

Ashok Leyland records sales 14,463 commercial vehicle units in Aug'24
( Hot Pursuit - 02-Sep-24 10:05 )

Benchmarks trade with minor cuts; consumer durables advance
( Market Commentary - Mid-Session 02-Apr-24 10:39 )

Ashok Leyland Ltd spurts 0.89%, up for five straight sessions
( Hot Pursuit - 02-Apr-24 13:00 )

Ashok Leyland to hold board meeting
( Corporate News - 08-May-24 17:01 )

Ashok Leyland records sales 22,866 commercial vehicle units in March'24
( Hot Pursuit - 02-Apr-24 09:50 )

Ashok Leyland appoints director
( Corporate News - 04-Jun-24 18:59 )

Ashok Leyland sells 14,463 units in Aug'24
( Corporate News - 02-Sep-24 09:56 )

Ashok Leyland total sales grows 11% in July'23
( Hot Pursuit - 02-Aug-23 09:26 )

Ashok Leyland appoints Shenu Agarwal as CEO
( Hot Pursuit - 08-Dec-22 16:10 )