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Mumbai: Commercial vehicles major Ashok Leyland on Thursday reported a return to profitability after three consecutive quarters of losses. However, on a full-year basis, the company remained in the red for the second consecutive year.

It reported a consolidated profit of Rs 158 crore for the quarter ending 31 March, down 58% year-on-year. Consolidated revenue for the quarter grew by 22% year-on-year to Rs 9,927 crore, led by higher sales as well as price increases.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 18% to Rs 1,194 crore. EBITDA margin narrowed by 41 basis points to 12%.

During the quarter, the company achieved a market share of over 30% in the lucrative trucks segment, its highest in 11 quarters.

The company’s expansion of its sales network in the north and the east of the country, the launch of CNG-powered options in the intermediate trucks segment and a revival in demand for multi-axle trucks helped

improve its market share, according to chairman Dheeraj .

“We are seeing a very strong recovery that’s happened in the Q4,” Hinduja said during a media call on Thursday. “Looking ahead, the industry is looking a lot more promising. Fortunately, all our products have been performing very well.”

Hinduja acknowledged that the past couple of years has been particularly challenging for the commercial vehicles industry. A host of challenges came the industry’s way from an economic slowdown to the Covid-19 pandemic and from a shortage of semiconductor chips to a spike in commodity prices.

In this backdrop, the company reported a consolidated loss of Rs 285 crore for the fiscal year FY22 compared to a loss of Rs 70 crore in FY21. Revenue grew by 35% to Rs 26,237 crore.

The loss was primarily led by poor performance and expenses on account of overseas subsidiaries, the company said. On a standalone basis, it reported a profit of Rs 542 crore for the fiscal year.

The company declared a dividend of Rs 1 per share. Ashok Leyland’s stock closed 2.77% lower on Thursday at Rs 122.9. It has lost 3.76% since the beginning of the year compared to a 10.8% dip in the benchmark Sensex.


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