The share price of Ashok Leyland jumped over 9 percent on Friday after the company turned profitable in the March quarter of FY21. The company posted a profit of Rs 241 crore in Q4 with recovery in sales. It had posted a net loss of Rs 57 crore in the year-ago period.
The stock rose as much as 9.4 percent to its day's high of Rs 129.35 per share on the BSE.
The flagship company of Hinduja Group posted an 83 percent rise in net sales to Rs 6,972 crore in Q4 from Rs 3,814.16 crore in the year-ago quarter.
During Q4 FY21, the company's medium and heavy commercial vehicles (MHCV) volumes surged 111 percent YoY, better than the industry growth rate. The company also said its MHCV truck market share for Q4FY21 has improved to 28.9 percent from 27.6 percent in Q4FY20.
However, for the full year FY21, the company reported a net loss of Rs 314 crore when compared with a net profit of Rs 240 crore in FY20. Revenue for FY21 came in at Rs 15,301 crore as against Rs 17,467 crore in the previous year as the total MHCV industry volume for FY21 declined by 28 percent.
“We have seen a recovery in Q4FY21 and the overall performance has been better. However, with the sudden onset of the second wave, the challenges for the industry continue. We are better prepared this time,” said Vipin Sondhi, MD & CEO, Ashok Leyland.