Ashok Leylands big turnaround in Q1FY16

Ashok Leyland, flagship of the Hinduja Group announced its June quarter results on August 12, 2015. The company witnessed a big turnaround in the June quarter, as it reported a net profit of Rs 159.32 crore, against net loss of Rs 47.95 crore for the same period last year. In response to the strong results the shares of the company zoomed about 4 per cent in a weak market and touched one year high of Rs 90 on Wednesday (12th August) in the BSE.

Ashok Leyland posted a growth of 55 per cent in revenue, which stands at Rs 3841.22 crore in Q1FY16 as compared to Rs 2477.8 crore in Q1FY15. The company outperformed the Industry volume growth of 23 per cent, as Ashok Leyland registered 45 per cent growth in Medium and Heavy Commercial vehicles on an annual basis. In June quarter the company sold 14706 nos. of trucks and 3894 nos. of buses.

The Company's total operating expenditure also increased by 45.23 per cent to Rs 3452.52 crore in Q1FY16 as against Rs 2377.30 crore in Q1FY15. Ashok Leyland's consumption of raw-materials went up by 49.24 per cent amounts to Rs 2559.19 crore, while other expenses were up by 63.48 per cent to 454.94 crore and employee cost also incremented by 16.70 per cent to Rs 330.41 crore as compared to corresponding quarter of last year.

The EBITDA jumped by 286.77 per cent on an annual basis to Rs 388.70 crore in Q1FY16, however its EBITDA margin expanded by 544 basis points to 10.12 per cent as compared to the same period of last year, led by the strong growth in revenue. Its PBT standing at Rs 234.91 crore in Q1FY16 against loss of Rs 70.45 crore in Q1FY15. The company's depreciation cost increased marginally to Rs 104.32, while its finance cost declined by 27.99 per cent to Rs 76.57 crore and other income down by 29.97 per cent to Rs 27.10 crore compared to the same period of last financial year. As a result of strong growth in revenue and continued strict discipline on costs, helped company to boost its PAT margin by 609 basis points to reach 4.15 per cent during Q1FY16 compared to Q1FY15.

Ashok Leyland's shareholding pattern indicates that FII holdings contracted by 113 basis points to 20.21 per cent and DII holdings also contracted by 51 basis points to 12.36 per cent during Q1FY16 as compared to the same period of last year.

Ashok Leyland is the second largest manufacturer of commercial vehicles in India, and the fourth largest manufacturer of buses in the world and the 16th largest manufacturer of trucks globally. Headquartered in Chennai, India, the company's manufacturing footprint spreads across the globe with 8 plants; including one at Ras Al Khaimah (UAE).