Capitaline

Results 24-May-23

Analysis

Ashok Leyland

OPM jumped by 280 bps

For the quarter ending March 2023, consolidated Net sales (including other operating income) of Ashok Leyland has increased 33% to Rs 13202.55 crore compared to quarter ended Mar 2022. Sales of Commercial Vehicle segment has gone up 34.35% to Rs 12,190.55 crore (accounting for 92.33% of total sales). Sales of Financial Service segment has gone up 18.72% to Rs 1,012.88 crore (accounting for 7.67% of total sales). Inter-segment sales rose Rs 0.23 crore to Rs 0.88 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 108.49% to Rs 1,218.49 crore. PBIT of Commercial Vehicle segment rose 111.25% to Rs 1,006.38 crore (accounting for 82.59% of total PBIT). PBIT of Financial Service segment rose 96.34% to Rs 212.11 crore (accounting for 17.41% of total PBIT).

PBIT margin of Commercial Vehicle segment rose from 5.25% to 8.26%. PBIT margin of Financial Service segment rose from 12.66% to 20.94%. Overall PBIT margin rose from 5.89% to 9.23%.

Operating profit margin has jumped from 12.03% to 14.83%, leading to 63.96% rise in operating profit to Rs 1,957.92 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 67.62% to 64.87%. Purchase of finished goods cost fell from 2.67% to 2.57%. Employee cost increased from 7.01% to 7.06%. Other expenses fell from 10.44% to 10.18%.

Other income fell 1.19% to Rs 30.61 crore. PBIDT rose 62.32% to Rs 1988.53 crore. Provision for interest rose 25.69% to Rs 582.13 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 84.58% to Rs 1406.4 crore. Provision for depreciation rose 10.79% to Rs 258.74 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 117.20% to Rs 1,147.66 crore. Share of profit/loss was 213.51% higher at Rs 8.12 crore. Provision for tax was expense of Rs 411.06 crore, compared to Rs 106.43 crore. Effective tax rate was 33.87% compared to 40.27%.

Minority interest increased 184.95% to Rs 50.18 crore. Net profit attributable to owners of the company increased 436.60% to Rs 752.53 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 .

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

Board recommended a dividend of Rs 2.60 per equity share of Re 1 each for the financial year ended March 31, 2023. Record date is fixed as July 7, 2023.

Ashok Leyland`s truck market share for Q4 FY23 has improved to 32.7% compared to 30.6% in Q4 FY22.

Company’s domestic LCV volumes grew by 18% in Q4 FY23 to 18840 units. On a full year basis export volumes stood at 11289 units which was higher than last year by 2%.

Management Comments :
Mr. Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said "The CV industry is buoyant due to favourable macroeconomic factors and a healthy demand from the end-user industries. This trend is expected to continue alongside growth in core sectors such as construction & mining, agriculture, increased capital outlay for infrastructure projects and pent-up replacement demand. The focus on International Operations, Defence, Power Solutions and Parts businesses wiff continue to balance the volatility of our core business. With momentum gradually picking up in electric vehicfes, Switch Mobifity is well poised to complement the developments at Ashok Leyland across a spectrum of alternate propulsion systems. At Ashok Leyland we are driven by our brand philosophy of "Koi Manzil Door Nahin" and we remain confident as ever that we will deliver sustainable and profitable growth going forward with our Newgen products and strong customer focus "

Mr. Shenu Agarwal, MD & CEO, Ashok Leyland, added, "It has been a truly wholesome performance. We have been able to achieve growth in market share, across geographies and across product segments, along with significant improvement in our profitability. All this demonstrates our strong fundamentals - competitive and wide product portfolio, strong and widespread network and a talented and paSSionate team. While we shall continue to pursue better realisations even as we expand market share, our resolute focus shall remain on bringing deeper efficiency and cost improvement. We have generated close to INR 2287 Cr of cash this quarter owing to better profits and focused management of working capital, which gives us ability to further accelerate our investment in future products and technologies. "

Ashok Leyland : Consolidated Results

	Quarter ended			Year ended
Particulars	202303	202203	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	13,202.55	9,926.97	33.00	41,672.60	26,237.15	58.83
OPM (%)	14.83	12.03	280 bps	12.22	10.54	168 bps
OP	1,957.92	1,194.11	63.96	5,092.90	2,765.24	84.18
Other Inc.	30.61	30.98	-1.19	110.77	86.81	27.60
PBIDT	1,988.53	1,225.09	62.32	5,203.67	2,852.05	82.45
Interest	582.13	463.15	25.69	2,093.50	1,869.05	12.01
PBDT	1,406.40	761.94	84.58	3,110.17	983.00	216.40
Depreciation	258.74	233.54	10.79	900.22	865.96	3.96
PBT	1,147.66	528.40	117.20	2209.95	117.04	1,788.20
Share of Profit/(Loss) from Associates	8.12	2.59	213.51	10.75	7.52	42.95
PBT before EO	1155.78	530.99	117.67	2220.7	124.56	1,682.84
EO Income	57.99	-266.71	LP	47.89	-324.15	LP
PBT after EO	1213.77	264.28	359.27	2268.59	-199.59	LP
Taxation	411.06	106.43	286.23	906.93	85.86	956.29
PAT	802.71	157.85	408.53	1361.66	-285.45	LP
Minority Interest (MI)	50.18	17.61	184.95	120.85	73.16	65.19
Net profit	752.53	140.24	436.60	1240.81	-358.61	LP
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	752.53	140.24	436.60	1240.81	-358.61	LP
EPS (Rs)*	2.44	0.96	155.49	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 ended
	% of (Total)	202303	202203	Var.(%)	% of (Total)	202303	202203	Var.(%)
Sales
Commercial Vehicle	92.33	12,190.55	9,074.01	34.35	91.24	38,024.72	23,021.03	65.17
Financial Service	7.67	1,012.88	853.19	18.72	8.76	3,649.54	3,216.92	13.45
Total Reported Sales	100.00	13,203.43	9,927.20	33.00	100.00	41,674.26	26,237.95	58.83
Less: Inter segment revenues		0.88	0.23	282.61		1.66	0.80	107.50
Net Sales	100.00	13,202.55	9,926.97	33.00	100.00	41,672.60	26,237.15	58.83
PBIT
Commercial Vehicle	82.59	1,006.38	476.40	111.25	73.48	1,819.40	-82.46	LP
Financial Service	17.41	212.11	108.03	96.34	26.52	656.52	447.63	46.67
Total PBIT	100.00	1,218.49	584.43	108.49	100.00	2,475.92	365.17	578.02
Less : Interest		101.44	87.01	16.58		376.74	334.94	12.48
Add: Other un-allcoable		96.72	-233.14	LP		169.41	-229.82	LP
PBIT Margin(%)
Commercial Vehicle		8.26	5.25	300.53		4.78	-0.36	514.30
Financial Service		20.94	12.66	827.94		17.99	13.91	407.43
PBT	100.00	1,213.77	264.28	359.27	100.00	2,268.59	-199.59	LP

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Ashok Leyland total sales rises 10% YoY in August
( Hot Pursuit - 01-Sep-23 15:35 )

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( Hot Pursuit - 24-Apr-24 13:05 )

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( Hot Pursuit - 26-May-23 13:35 )

Ashok Leyland Ltd spurts 5.05%, gains for five straight sessions
( Hot Pursuit - 16-Jun-23 13:00 )

Ashok Leyland standalone net profit rises 273.75% in the March 2022 quarter
( Results - Announcements 19-May-22 17:16 )

Ashok Leyland Ltd spurts 0.67%, gains for five straight sessions
( Hot Pursuit - 12-May-23 13:00 )

Ashok Leyland consolidated net profit declines 60.22% in the March 2022 quarter
( Results - Announcements 19-May-22 17:17 )