On the BSE, the Ashok Leyland share price rose 5% and reached a 52-week high of Rs. 161.75.Recently, the order included a 32-seat Oyster bus and a 55-seat Falcon bus. According to the firm, STS Group and Emirate Transport would receive most buses. The goods will be produced at the UAE assembly facility. In Ras Al Khaimah, United Arab Emirates, Ashok Leyland operates a $50 million cutting-edge manufacturing complex. In the whole Gulf Cooperation Council area, this is the sole indigenous bus manufacturing factory with certification.
According to Ashok Leyland, the market for medium and heavy commercial vehicles (MHCV) trucks is anticipated to grow due to higher fleet utilisation rates and replacement demand in conjunction with an increase in government investment in infrastructure and a rebound in economic activity.
With the reopening of schools and workplaces, the gradual return to normalcy following the epidemic, and an increase in tender orders by STUs, growth is anticipated to resume in the MHCV Bus market.
Q1 FY23 RESULTS
- In Q1, Ashok Leyland’s net increased by 124%.
- Earnings are roughly 2.5 times higher.
- The Ashok Leyland share price increased by 31.1%.
- In Q1 FY’23, Ashok Leyland, the Hinduja Group’s flagship company in India, announced a 145% growth in quarterly YoY revenues. The quarter’s revenues were Rs. 7223 crores as opposed to Rs. 2951 crores in Q1 FY’22.
- Ashok Leyland’s domestic MHCV volume increased by 189% during that time, and its market share increased from 27.0% to 30.0%. In comparison to Q1 FY22’s 26.2%, trucks held a 31.1% market share.
- The Company’s domestic LCV volume in the first quarter of FY’23 was 14384 nos., up 66% from the previous year’s first quarter (8,690 nos.) Export volume (MHCV & LCV) for the first quarter of FY’23 was 2527, up 76% over the same period in 2012. (1437 nos.)
- Compared to a loss of Rs. 140 Cr. The year before, EBITDA for the first quarter of FY23 was at Rs. 320 Cr. Net Loss of Rs. 282 Cr. in Q1 FY’22, the firm recorded a net profit of Rs. 68 Cr. for Q1 FY’23. Comparatively to Q1 of the previous year, Net Debt to Equity was 0.3 times.
Conclusion
With the expansion in critical industries, including construction, mining, and agriculture, more government spending on infrastructure projects, and pent-up replacement demand, the market for M&HCVs is still high. The bus industry shows signs of resurgence, with new offices and educational institutions emerging.
The business aims to further raise this proportion with an expanding CNG offering. Price increases and operating leverage ought to help boost margins. Our estimations may benefit if the scrappage policy is implemented effectively, in our opinion.