Ashok Leyland Ltd

About

Ashok Leyland is the flagship Company of the Hinduja group, having a long-standing presence in the domestic medium and heavy commercial vehicle (M&HCV) segment. The company has a strong brand and well-diversified distribution and service network across the country and has a presence in 50 countries, it is one of the most fully-integrated manufacturing companies. Its headquarter is in Chennai [1]
They manage driver training institutes across India and have trained over 8,00,000 drivers since inception. [1]

Key Points

Segment Performance
M&HCV Truck Segment
Its trucks segment ranges from 2.5T GVW (Gross Vehicle Weight) to 55T GTW and some of its product are DOST, AVTR, PARTNER, etc [1]
It is the 14th largest manufacturer of trucks globally [2]
In FY20, it witnessed a steep decline in volume by 54%, with market share standing at 28.9% in the Domestic M&HCV Trucks Segment [3]
It launched India’s first-ever BS-VI compliant with i-Gen6 technology AVTR truck under the modular platform for the medium & heavy range in FY20 [4]

See full details
  • Market Cap 37,399 Cr.
  • Current Price 127
  • High / Low 143 / 72.0
  • Stock P/E
  • Book Value 26.8
  • Dividend Yield 0.47 %
  • ROCE 5.62 %
  • ROE -2.11 %
  • Face Value 1.00

Pros

  • Company is expected to give good quarter

Cons

  • Stock is trading at 4.76 times its book value
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of -1.76% over past five years.
  • Company has a low return on equity of 9.21% for last 3 years.
  • Debtor days have increased from 37.19 to 56.68 days.
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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
8,692 7,490 9,874 6,588 5,096 5,189 5,088 1,505 3,853 5,954 8,142 4,088
7,430 6,352 8,382 5,555 4,353 4,437 4,383 1,386 3,273 5,207 7,129 3,752
Operating Profit 1,262 1,138 1,492 1,034 743 752 705 119 580 747 1,013 336
OPM % 15% 15% 15% 16% 15% 14% 14% 8% 15% 13% 12% 8%
Other Income 11 16 26 23 -21 18 38 24 23 0 163 14
Interest 381 401 384 432 456 468 445 485 490 468 457 462
Depreciation 160 175 175 183 178 180 209 185 192 213 245 211
Profit before tax 732 577 959 441 88 121 89 -527 -79 66 473 -324
Tax % 25% 26% 22% 38% 20% 53% 35% 26% -22% 42% 20% 22%
Net Profit 524 399 713 247 45 27 18 -409 -123 14 353 -274
EPS in Rs 1.78 1.36 2.43 0.84 0.15 0.09 0.06 -1.39 -0.42 0.05 1.20 -0.93

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 TTM
11,859 15,708 21,260 22,871 29,636 33,197 21,951 19,454 22,037
11,437 14,191 18,281 19,826 25,387 28,287 18,718 16,992 19,361
Operating Profit 422 1,517 2,979 3,045 4,248 4,910 3,233 2,462 2,676
OPM % 4% 10% 14% 13% 14% 15% 15% 13% 12%
Other Income 613 -106 -321 406 190 139 57 207 200
Interest 805 872 925 1,049 1,227 1,502 1,802 1,901 1,877
Depreciation 530 580 524 573 646 676 750 836 862
Profit before tax -300 -42 1,209 1,829 2,565 2,872 739 -67 136
Tax % 23% -415% 41% 11% 29% 24% 38% -4%
Net Profit -164 134 682 1,589 1,760 2,079 337 -165 -30
EPS in Rs -0.62 0.47 2.40 5.58 6.01 7.08 1.15 -0.56 -0.10
Dividend Payout % 0% 96% 40% 28% 40% 44% 44% -107%
Compounded Sales Growth
10 Years:%
5 Years:-2%
3 Years:-13%
TTM:31%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:64%
Stock Price CAGR
10 Years:17%
5 Years:9%
3 Years:2%
1 Year:67%
Return on Equity
10 Years:%
5 Years:15%
3 Years:9%
Last Year:-2%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
266 285 285 285 293 294 294 294
Reserves 3,723 4,227 4,979 6,100 7,128 8,452 7,495 7,568
Borrowings 8,500 9,070 11,054 13,168 15,791 19,168 22,417 24,077
5,035 6,011 5,806 7,056 10,171 11,212 7,924 10,130
Total Liabilities 17,524 19,592 22,123 26,609 33,383 39,126 38,130 42,069
7,573 6,529 5,890 6,591 6,596 6,695 8,031 8,484
CWIP 297 216 87 244 439 678 574 336
Investments 1,165 1,499 1,031 1,933 4,383 1,492 960 1,096
8,491 11,348 15,115 17,841 21,965 30,261 28,565 32,154
Total Assets 17,524 19,592 22,123 26,609 33,383 39,126 38,130 42,069

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
-104 95 -1,275 270 1,462 -3,745 383 -1,065
-378 -124 456 -1,676 -3,163 1,897 -1,201 -973
461 781 1,660 738 1,905 2,398 1,239 1,331
Net Cash Flow -20 752 841 -668 205 549 421 -707

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021
Debtor Days 43 31 25 20 14 30 25 57
Inventory Days 69 58 50 73 42 52 42 76
Days Payable 116 108 71 85 96 88 90 162
Cash Conversion Cycle -5 -19 5 8 -39 -6 -22 -29
Working Capital Days 48 23 37 46 14 54 117 113
ROCE % 9% 17% 16% 18% 17% 9% 6%

Shareholding Pattern

Numbers in percentages

Sep 2018 Dec 2018 Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021
51.12 51.12 51.12 51.12 51.12 51.12 51.54 51.54 51.54 51.54 51.54 51.54
22.86 21.90 19.06 18.75 17.05 19.24 16.94 15.64 14.60 16.30 18.08 17.04
9.90 9.11 10.00 10.92 12.97 12.30 14.98 14.01 17.56 17.64 16.72 18.15
0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08
16.04 17.79 19.74 19.13 18.78 17.26 16.46 18.73 16.23 14.44 13.58 13.20

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