Ashok Leyland Q4FY23 PAT up 5-fold at Rs753 crore on double digit EBITDA margins at 11%

Ashok Leyland reported 33% growth in sales revenues for the March 2023 quarter on consolidated basis at Rs13,203 crore. Revenues were up sequentially by 27.52%. For the quarter, its truck market share improved by 210 bps yoy to 32.7% while the bus market share improved by 70 bps yoy at 27.1%. Full year revenues stood at Rs36,144 crore; higher by 67% yoy. For Q4, LCV volumes grew 18% at 18,840 units. Exports in Q4 were up 2% yoy.

The EBITDA grew by 77% yoy on lower input costs while the EBITDA margins bounced back to double digits at close to 11% in the fourth quarter. Full year EBITDA margins stood at 8.1% compared to 4.6% in the previous year. Net debt of Ashok Leyland stood at Rs720 crore. The company achieved growth in market share across various geographies and also across various product categories. Total cash generated in the quarter was Rs2,287 crore.

Financial highlights for Mar-23 compared yoy and sequentially

For the fourth quarter, operating margins increased sharply from 7.75% to 10.33% on the back of doubling of operating profits from the commercial vehicles business and also the financial services business. Hence, the company has seen a sharp improvement in the interest coverage ratio for the quarter.