Commercial vehicles maker Ashok Leyland on Thursday reported narrowing of its net loss to Rs 282 crore in the three months to June 2021.
The Hinduja Group flagship company had posted a net loss of Rs 389 crore in the same period a year ago.
Revenues surged 353 per cent to Rs 2,951 crore as against Rs 651 crore in Q1 FY21, Ashok Leyland said in a statement.
Domestic MHCV (medium and heavy commercial vehicle) volume grew at 1,041 per cent, which is close to twice the industry growth of 562 per cent, over the same period last year, it stated.
Similarly, domestic LCV (light commercial vehicle) volumes were higher at 8,690 units as compared to 2,686 units in the same quarter of last fiscal, registering a growth of 224 per cent, Ashok Leyland said.
Export volumes (MHCV and LCV) during the reporting quarter stood at 1,437 units, up 254 per cent over the 405 units shipped out in Q1 FY21.
The company saw strong demand for the AVTR range -- India's first modular truck platform, and this demand is expected to further improve, mirroring the increased economic activity expected, it said.
In the LCV segment, the recently launched 'Bada Dost' has been well accepted by the customers and the company is ramping up production in line with market demand, it added.
The supply of Electronic Control Units (ECUs), continues to be a concern, owing to the limited availability of semi-conductors, it further said.
The industry is also feeling the impact of high raw material prices, especially steel, it said, adding "the management continues to monitor the situation very closely and expects it to soften going forward." Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes, the vehicle maker stated, adding the other businesses like defence, power solutions and after-market continue to contribute strongly to the top line of the company.
"The industry has seen signs of volume recovery in Q1 FY'22 over the same period last year, and we expect this trend to continue going forward. We have worked to improve our businesses and ensured a strong focus on reining in costs this quarter," said Vipin Sondhi, MD and CEO, Ashok Leyland.
The company's digital-first approach is helping it expand its offerings and getting in newer set of customers, he said.
Gopal Mahadevan, Director and CFO, Ashok Leyland, added, "With our volumes picking up on account of our versatile product offerings, our robust cost initiatives have helped us improve our bottom line." Revenue from the company's other businesses like power solutions, defence and digital customer solutions, have also contributed increasingly, improving its revenue potential.
Stating that it has already vaccinated 76 per cent of all its employees and is rapidly scaling up to ensure complete coverage, the company said it is also working closely with government agencies in order to expend its CSR spends on community vaccination drives.
"Recently we announced strategic steps to move towards net zero carbon mobility through our subsidiary, Switch Mobility. We have also formed an ESG committee of the Board, which will guide and propel us to achieve our sustainability agenda," Sondhi added.
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