Capitaline

Results 27-May-24

Analysis

Ashok Leyland

OP up 32.92%

For the quarter ending March 2024, consolidated net sales (including other operating income) of Ashok Leyland has increased 2.84% to Rs 13577.58 crore compared to quarter ended March 2023. Sales of Commercial Vehicle segment has gone down 0.36% to Rs 12,147.08 crore (accounting for 89.46% of total sales). Sales of Financial Service segment has gone up 41.35% to Rs 1,431.66 crore (accounting for 10.54% of total sales). Inter-segment sales rose Rs 0.88 crore to Rs 1.16 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 34.60% to Rs 1,640.06 crore. PBIT of Commercial Vehicle segment rose 34.38% to Rs 1,352.41 crore (accounting for 82.46% of total PBIT). PBIT of Financial Service segment rose 35.61% to Rs 287.65 crore (accounting for 17.54% of total PBIT).

PBIT margin of Commercial Vehicle segment rose from 8.26% to 11.13%. PBIT margin of Financial Service segment fell from 20.94% to 20.09%. Overall PBIT margin rose from 9.23% to 12.08%.

Operating profit margin has jumped from 14.83% to 19.17%, leading to 32.92% rise in operating profit to Rs 2,602.52 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 64.87% to 59.38%. Purchase of finished goods cost rose from 2.57% to 3.41%. Employee cost increased from 7.06% to 7.09%. Other expenses rose from 10.18% to 10.70%.

Other income rose 16.66% to Rs 35.71 crore. PBIDT rose 32.67% to Rs 2638.23 crore. Provision for interest rose 42.45% to Rs 829.23 crore. Loan funds rose to Rs 40,802.18 crore as of 31 March 2024 from Rs 31,160.93 crore as of 31 March 2023. Inventories rose to Rs 4,008.01 crore as of 31 March 2024 from Rs 3,440.43 crore as of 31 March 2023. Sundry debtors were lower at Rs 3,898.15 crore as of 31 March 2024 compared to Rs 4,187.36 crore as of 31 March 2023. Cash and bank balance rose to Rs 7,080.05 crore as of 31 March 2024 from Rs 2,186.72 crore as of 31 March 2023. Investments declined from Rs 4,852.35 crore as of 31 March 2023 to Rs 2,328.61 crore as of 31 March 2024.

PBDT rose 28.63% to Rs 1809 crore. Provision for depreciation fell 10% to Rs 232.87 crore. Fixed assets declined from Rs 7,221.84 crore as of 31 March 2023 to Rs 6,037.35 crore as of 31 March 2024. Intangible assets increased from Rs 1,192.59 crore to Rs 2,533.98 crore.

Profit before tax grew 37.33% to Rs 1,576.13 crore. Share of profit/loss was 28.69% lower at Rs 5.79 crore. Provision for tax was expense of Rs 581.99 crore, compared to Rs 411.06 crore. Effective tax rate was 38.40% compared to 33.87%.

Minority interest increased 59.98% to Rs 80.28 crore. Net profit attributable to owners of the company increased 13.41% to Rs 853.41 crore.

Equity capital increased from Rs 293.61 crore as of 31 March 2023 to Rs 293.63 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 51.11% as of 31 March 2024 ,compared to 51.11% as of 31 March 2023 . Promoters pledged stake was 22.10% as of 31 March 2024 ,compared to 19.04% as of 31 March 2023 .

Full year results analysis.

Net sales (including other operating income) of Ashok Leyland has increased 9.88% to Rs 45790.64 crore. Sales of Commercial Vehicle segment has gone up 7.71% to Rs 40,956.35 crore (accounting for 89.44% of total sales). Sales of Financial Service segment has gone up 32.54% to Rs 4,836.96 crore (accounting for 10.56% of total sales). Inter-segment sales rose Rs 1.66 crore to Rs 2.67 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 80.14% to Rs 4,460.18 crore. PBIT of Commercial Vehicle segment rose 98.67% to Rs 3,614.68 crore (accounting for 81.04% of total PBIT). PBIT of Financial Service segment rose 28.79% to Rs 845.50 crore (accounting for 18.96% of total PBIT).

PBIT margin of Commercial Vehicle segment rose from 4.78% to 8.83%. PBIT margin of Financial Service segment fell from 17.99% to 17.48%. Overall PBIT margin rose from 5.94% to 9.74%.

Operating profit margin has jumped from 12.22% to 17.35%, leading to 55.96% rise in operating profit to Rs 7,942.87 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 66.83% to 60.92%. Purchase of finished goods cost rose from 2.78% to 3.36%. Employee cost increased from 7.65% to 7.92%. Other expenses fell from 10.70% to 10.67%.

Other income rose 26.91% to Rs 140.58 crore. PBIDT rose 55.34% to Rs 8083.45 crore. Provision for interest rose 42.45% to Rs 2982.25 crore. Loan funds rose to Rs 40,802.18 crore as of 31 March 2024 from Rs 31,160.93 crore as of 31 March 2023. Inventories rose to Rs 4,008.01 crore as of 31 March 2024 from Rs 3,440.43 crore as of 31 March 2023. Sundry debtors were lower at Rs 3,898.15 crore as of 31 March 2024 compared to Rs 4,187.36 crore as of 31 March 2023. Cash and bank balance rose to Rs 7,080.05 crore as of 31 March 2024 from Rs 2,186.72 crore as of 31 March 2023. Investments declined from Rs 4,852.35 crore as of 31 March 2023 to Rs 2,328.61 crore as of 31 March 2024.

PBDT rose 64.02% to Rs 5101.2 crore. Provision for depreciation rose 3.01% to Rs 927.29 crore. Fixed assets declined from Rs 7,221.84 crore as of 31 March 2023 to Rs 6,037.35 crore as of 31 March 2024. Intangible assets increased from Rs 1,192.59 crore to Rs 2,533.98 crore.

Profit before tax grew 88.87% to Rs 4,173.91 crore. Share of profit/loss was 52.37% higher at Rs 16.38 crore. Provision for tax was expense of Rs 1409.73 crore, compared to Rs 906.93 crore. Effective tax rate was 34.33% compared to 39.98%.

Minority interest increased 76.10% to Rs 212.82 crore. Net profit attributable to owners of the company increased 100.15% to Rs 2,483.52 crore.

Equity capital increased from Rs 293.61 crore as of 31 March 2023 to Rs 293.63 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.

Promoters’ stake was 51.11% as of 31 March 2024 ,compared to 51.11% as of 31 March 2023 . Promoters pledged stake was 22.10% as of 31 March 2024 ,compared to 19.04% as of 31 March 2023 .

Cash flow from operating activities decreased to negative Rs -6,257.98 crore for year ended March 2024 from negative Rs -4,499.26 crore for year ended March 2023. Cash flow used in acquiring fixed assets during the year ended March 2024 stood at Rs 1,133.54 crore, compared to Rs 929.10 crore during the year ended March 2023.

Other Highlights

In FY24, the company achieved CV volumes of 194,553 units compared to the previous high of 197,366. LCV Volumes in the 2-3.5T category were maintained despite the industry witnessing a reduction in volumes.

Export volumes in FY24 grew 5% YoY despite challenging conditions in target markets. The Power Solutions and Defence Businesses also posted impressive growth.

In the M&HCV Bus segment, Ashok Leyland emerged as market leader with a market share gain of 5.8% points.

During the year, the Company opened 246 new outlets across the country.

Management Comments :
Mr. Dheeraj Hinduja, Chairman, Ashok Leyland said, “What makes this achievement significant is that it is coming in a year when we are celebrating our 75th year anniversary. We continue to be optimistic about our industry prospects in the short to medium terms backed by anticipated robust growth in the Indian economy. We are confident that we will continue to maintain sustainable and profitable growth year after year through our unwavering pursuit on delivering differentiated products and providing best-in-class customer satisfaction.”

Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland Limited said “FY24 has been a strong year for us. Whether it is revenues, EBITDA margins or profits, we have achieved all-time high numbers. This gives us even more strength to move towards our medium-term goal of mid-teen EBITDA. Our product portfolio is very robust, and our future pipeline is strong. We are confident that our product superiority and our expanding reach will help us to further improve our market share as well as our price realizations. Our team continues to relentlessly focus on cost management initiatives.”

Ashok Leyland : Consolidated Results

	Quarter ended			Year ended
Particulars	202403	202303	Var.(%)	202403	202303	Var.(%)
Net Sales (including other operating income)	13,577.58	13,202.55	2.84	45,790.64	41,672.60	9.88
OPM (%)	19.17	14.83	434 bps	17.35	12.22	512 bps
OP	2,602.52	1,957.92	32.92	7,942.87	5,092.90	55.96
Other Inc.	35.71	30.61	16.66	140.58	110.77	26.91
PBIDT	2,638.23	1,988.53	32.67	8,083.45	5,203.67	55.34
Interest	829.23	582.13	42.45	2,982.25	2,093.50	42.45
PBDT	1,809.00	1,406.40	28.63	5,101.20	3,110.17	64.02
Depreciation	232.87	258.74	-10.00	927.29	900.22	3.01
PBT	1,576.13	1,147.66	37.33	4173.91	2209.95	88.87
Share of Profit/(Loss) from Associates	5.79	8.12	-28.69	16.38	10.75	52.37
PBT before EO	1581.92	1155.78	36.87	4190.29	2220.7	88.69
EO Income	-66.24	57.99	PL	-84.22	47.89	PL
PBT after EO	1515.68	1213.77	24.87	4106.07	2268.59	81.00
Taxation	581.99	411.06	41.58	1409.73	906.93	55.44
PAT	933.69	802.71	16.32	2696.34	1361.66	98.02
Minority Interest (MI)	80.28	50.18	59.98	212.82	120.85	76.10
Net profit	853.41	752.53	13.41	2483.52	1240.81	100.15
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	853.41	752.53	13.41	2483.52	1240.81	100.15
EPS (Rs)*	3.03	2.44	24.26	8.63	4.14	108.63

* EPS is on current equity of Rs 293.63 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 ended
	% of (Total)	202403	202303	Var.(%)	% of (Total)	202403	202303	Var.(%)
Sales
Commercial Vehicle	89.46	12,147.08	12,190.55	-0.36	89.44	40,956.35	38,024.72	7.71
Financial Service	10.54	1,431.66	1,012.88	41.35	10.56	4,836.96	3,649.54	32.54
Total Reported Sales	100.00	13,578.74	13,203.43	2.84	100.00	45,793.31	41,674.26	9.88
Less: Inter segment revenues		1.16	0.88	31.82		2.67	1.66	60.84
Net Sales	100.00	13,577.58	13,202.55	2.84	100.00	45,790.64	41,672.60	9.88
PBIT
Commercial Vehicle	82.46	1,352.41	1,006.38	34.38	81.04	3,614.68	1,819.40	98.67
Financial Service	17.54	287.65	212.11	35.61	18.96	845.50	656.52	28.79
Total PBIT	100.00	1,640.06	1,218.49	34.60	100.00	4,460.18	2,475.92	80.14
Less : Interest		99.64	101.44	-1.77		426.85	376.74	13.30
Add: Other un-allcoable		-24.74	96.72	PL		72.74	169.41	-57.06
PBIT Margin(%)
Commercial Vehicle		11.13	8.26	287.82		8.83	4.78	404.09
Financial Service		20.09	20.94	-84.92		17.48	17.99	-50.91
PBT	100.00	1,515.68	1,213.77	24.87	100.00	4,106.07	2,268.59	81.00

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