Ashok Leyland posts record Revenue

Ashok Leyland posts record Revenue

Company achieved an EBITDA margin of 10.6% in Q2 vs 10.1% in the same period last year

New Delhi/Chennai,: Ashok Leyland, flagship of the Hinduja Group, reported a revenue of Rs.7608Cr (Rs. 6076Cr), an increase of 25%, over the same period last year.

The Company achieved an EBITDA margin of 10.6% in Q2 vs 10.1% in the same period last year. The Company has posted consistent operating margins, despite market volatility, with double-digit EBITDA margins in 14 of the past 15 quarters.

Earnings before interest, tax, depreciation and amortization (EBITDA) is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance without having to factor in financing decisions, accounting decisions or tax environments.

Results for Q2 FY 2018-19: (as against same period last year)

Revenues increased by 25% to Rs. 7,608Cr, as against Rs. 6,076Cr

EBITDA increased by 32% to Rs. 806Cr, as against Rs. 612Cr

Net profit increased by 37% to Rs. 460Cr, as against Rs. 334Cr

Results for H1 FY 2018-19:

Revenue increased by 34% to Rs. 13,858Cr, as against Rs. 10,334Cr

EBITDA increased by 58% to Rs. 1,453Cr, as against Rs. 918Cr

Net profit increased by 86% to Rs. 830Cr, as against Rs. 446Cr

Vinod K. Dasari, Managing Director, Ashok Leyland Limited said "In a challenging market scenario and aggressive competitive environment, we have registered a record financial performance. After bringing the world's first BS4 engine with intelligent EGR, we continued to provide innovative world class products like the world's first inline pump based BS4 engine."

"We launched many digital technology based solutions, like "ServiceMandi" (market aggregator of highway service) and "eN-Dhan" card (leverages scale to reduce fuel costs), to help reduce the operating costs of our customers. Launched a year ago, "ServiceMandi" has completed 300,000 transactions and Rs. 150Cr in gross transaction value. "eN-Dhan" launched last quarter, has reached 25,000 customers. This is in line with our brand philosophy of "Aapki Jeet. Hamari Jeet", he adeed.

Gopal Mahadevan, CFO, Ashok Leyland added, "The growth in topline has helped in our financial performance. While input cost increases continue, we are attempting to neutralize this effect through efficient cost management. We continue to be zero debt as at the end of the quarter".

MD and CEO Vinod K. Dasari resigns

Meanwhile, Ashok Leyland has announced the resignation of its Managing Director and Chief Executive Officer (MD and CEO) Vinod K. Dasari effective 31 March, 2019.

After a successful stint of almost 14 years with Ashok Leyland, first as a Chief Operating Officer (COO) and then as CEO and MD, Dasari has decided to pursue his personal interests and seek new learning.

Respecting his personal decision, the Board in its meeting accepted his resignation. Dasari will continue to work in the current position until 31 March 2019, to ensure a smooth transition.

Dheeraj G Hinduja, Chairman observed on behalf of the Board "I would like to place on record the contribution of Dasari in making Ashok Leyland a formidable force in the industry. He along with his leadership team steered the company to ensure significant all round performance."

Dasari said, "My decision to leave is purely personal as I wish to pursue my personal interests and continue my learning journey. Fourteen years in this great Company, has been an incredible experience. There were many challenges along the way, but the continuous support of the Board and a committed team has helped the company achieve many laurels and set industry benchmarks. I consider it an honor and a privilege to have led this great organization over the last few years".

To assist in business continuity and a seamless transition, the Board has requested Dheeraj Hinduja to step in as Executive Chairman (EC) with immediate effect. The Nominations and Remuneration Committee of the Board will meet shortly to decide the future course of action in identifying the next CEO and MD.

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