Sales of Commercial Vehicle segment has gone up 74.69% to Rs 7,323.01 crore (accounting for 89.94% of total sales).  Sales of Financial Service segment has gone down 8.54% to Rs 819.48 crore (accounting for 10.06% of total sales).  Inter-segment sales rose Rs 0.01 crore to Rs 0.38 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 346.91% to Rs 396.45 crore.  PBIT of Commercial Vehicle reported profit of Rs 284.85 crore compared to loss of Rs 63.14 crore.  PBIT of Financial Service segment fell 26.51% to Rs 111.60 crore (accounting for 28.15% of total PBIT).  

PBIT margin of Commercial Vehicle segment rose from negative 1.51% to 3.89%.  PBIT margin of Financial Service segment fell from 16.95% to 13.62%.  Overall PBIT margin rose from 1.74% to 4.87%.  

Operating profit margin has slumped from 13.85% to 12.45%, leading to 43.77% rise in operating profit to Rs 1,013.30 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 48.55% to 65.78%.   Purchase of finished goods cost fell from 4.98% to 3.31%.   Employee cost decreased from 13.06% to 6.86%.   Other expenses fell from 17.23% to 11.89%.   

Other income fell 11.39% to Rs 34.62 crore.  Provision for interest rose 2.73% to Rs 457.45 crore.  Loan funds rose to Rs 18,351.42 crore as of 31 March 2021 from Rs 16,330.90 crore as of 31 March 2020.  Inventories rose to Rs 2,495.85 crore as of 31 March 2021 from Rs 1,536.39 crore as of 31 March 2020.  Sundry debtors were higher at Rs 3,020.91 crore as of 31 March 2021 compared to Rs 1,496.16 crore as of 31 March 2020.  Cash and bank balance declined from Rs 2,235.30 crore as of 31 March 2020 to Rs 1,778.53 crore as of 31 March 2021.  Investments rose to Rs 1,095.63 crore as of 31 March 2021 from Rs 960.34 crore as of 31 March 2020 .  

Provision for depreciation rose 17.40% to Rs 244.95 crore.  Fixed assets declined from Rs 7,489.26 crore as of 31 March 2020 to Rs 6,280.69 crore as of 31 March 2021.  Intangible assets increased from Rs 1,115.56 crore to Rs 2,539.07 crore.  

Profit before tax grew 284.21% to Rs 345.52 crore.  Share of profit/loss was 126.61% higher at Rs 2.47 crore.  Provision for tax was expense of Rs 96.34 crore, compared to Rs 31.2 crore.  Effective tax rate was 20.35% compared to 35.06%.

Minority interest decreased 38.13% to Rs 24.57 crore.  Net profit attributable to owners of the company increased 1,851.08% to Rs 352.56 crore.  

Equity capital stood at Rs 293.55 crore as of 31 March 2021 to Rs 293.55 crore as of 31 March 2020.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 51.12% as of 31 March 2021 ,compared to 51.12% as of 31 March 2020 .  Promoters pledged stake was 17.62% as of 31 March 2021 ,compared to 9.26% as of 31 March 2020 .  

Full year results analysis.

Consolidated net sales (including other operating income) of Ashok Leyland has declined 11.38% to Rs 19454.1 crore.  Sales of Commercial Vehicle segment has gone down 13.32% to Rs 16,308.09 crore (accounting for 83.82% of total sales).  Sales of Financial Service segment has gone up 0.35% to Rs 3,147.26 crore (accounting for 16.18% of total sales).  Inter-segment sales rose Rs 0.07 crore to Rs 1.25 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 92.50% to Rs 61.31 crore.  PBIT of Commercial Vehicle reported loss of Rs 371.36 crore compared to profit of Rs 337.83 crore.  PBIT of Financial Service segment fell 9.88% to Rs 432.67 crore (accounting for 705.71% of total PBIT).  

PBIT margin of Commercial Vehicle segment fell from 1.80% to 2.28%.  PBIT margin of Financial Service segment fell from 15.31% to 13.75%.  Overall PBIT margin fell from 3.73% to 0.32%.  

Operating profit margin has slumped from 14.73% to 12.66%, leading to 23.84% decline in operating profit to Rs 2,462.44 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 54.08% to 58.89%.   Purchase of finished goods cost fell from 4.24% to 4.04%.   Employee cost increased from 10.61% to 10.81%.   Other expenses fell from 15.41% to 13.94%.   

Other income rose 21.64% to Rs 131.16 crore.  Provision for interest rose 5.49% to Rs 1900.64 crore.  Loan funds rose to Rs 18,351.42 crore as of 31 March 2021 from Rs 16,330.90 crore as of 31 March 2020.  Inventories rose to Rs 2,495.85 crore as of 31 March 2021 from Rs 1,536.39 crore as of 31 March 2020.  Sundry debtors were higher at Rs 3,020.91 crore as of 31 March 2021 compared to Rs 1,496.16 crore as of 31 March 2020.  Cash and bank balance declined from Rs 2,235.30 crore as of 31 March 2020 to Rs 1,778.53 crore as of 31 March 2021.  Investments rose to Rs 1,095.63 crore as of 31 March 2021 from Rs 960.34 crore as of 31 March 2020 .  

Provision for depreciation rose 11.42% to Rs 835.62 crore.  Fixed assets declined from Rs 7,489.26 crore as of 31 March 2020 to Rs 6,280.69 crore as of 31 March 2021.  Intangible assets increased from Rs 1,115.56 crore to Rs 2,539.07 crore.  

Provision for tax was expense of Rs 2.52 crore, compared to Rs 279.36 crore.  Effective tax rate was negative 3.76% compared to 37.79%.

Minority interest decreased 22.33% to Rs 95.63 crore.  

Equity capital stood at Rs 293.55 crore as of 31 March 2021 to Rs 293.55 crore as of 31 March 2020.  Per share face Value remained same at Rs 1.00.  

Promoters' stake was 51.12% as of 31 March 2021 ,compared to 51.12% as of 31 March 2020 .  Promoters pledged stake was 17.62% as of 31 March 2021 ,compared to 9.26% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 1,065.13 crore for year ended March 2021 from Rs 383.18 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 751.67 crore, compared to Rs 1,349.08 crore during the year ended March 2020.  

Other Highlights

Board has recommended a dividend of Rs 0.60 per equity share of Re 1 each for the financial year ended 31st March 2021.

During Q4 FY21, year on year MHCV (Medium and Heavy Commercial Vehicle) truck volumes of the company have grown 111%.

Company's MHCV truck market share for Q4 FY21 has improved to 28.9% compared to 27.6% in Q4 FY20.

LCV (Light commercial vehicle) volume for Q4 FY21 stood at 17,042, which is 112% higher than Q4FY20 volume of 8,057.

In Q4FY21- MHCV & LCV exports stood at 3,164 , growth of 40% compared to 2,255 in Q4FY20. On a full year basis export volumes stood at 8,001, fall of 10% compared to 8,920 in FY20.

Going forward management sees good opportunities of growth in Exports, Defence, Power solutions and LCV.

Management Commentary: Mr. Vipin Sondhi, MD & CEO said, "We have seen recovery in Q4 FY'21 and the overall performance has been better. However, with the sudden onset of the second wave, the challenges for the industry continues. We are better prepared this time. With India's GDP poised to grow at 9.5% in FY'22, it augurs well for the CV industry. At Ashok Leyland, we remain rock solid and resilient, driven by our Newgen products and a talented team we are confident that we will come out stronger once demand picks up. This will help us deliver profitable growth".

Mr. Gopal Mahadevan, Whole Time Director & Chief Financial Officer, said, "We believe that the Q4 performance posted a good recovery. Our market shares have been growing steadily quarter on quarter in MHCV and in LCV, volumes have really picked up. All other businesses including Aftermarket and Power Solutions have done exceptionally well. The focus on cost and productivity continues".