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ASHOK LEYLAND 2021-22 Annual Report Analysis
Sat, 20 Aug

ASHOK LEYLAND has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

ASHOK LEYLAND Income Statement Analysis

  • Operating income during the year rose 34.9% on a year-on-year (YoY) basis.
  • The company's operating profit decreased by 4.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 9.3% in FY22 as against 13.0% in FY21.
  • Depreciation charges increased by 3.6% and finance costs decreased by 1.7% YoY, respectively.
  • Other income declined by 29.0% YoY.
  • Net profit for the year grew by NA YoY.
  • Net profit margins during the year declined from 0.4% in FY21 to 1.1% in FY22.

ASHOK LEYLAND Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 194,541 262,372 34.9%
Other income Rs m 1,374 976 -29.0%
Total Revenues Rs m 195,915 263,347 34.4%
Gross profit Rs m 25,323 24,304 -4.0%
Depreciation Rs m 8,356 8,660 3.6%
Interest Rs m 19,006 18,691 -1.7%
Profit before tax Rs m -666 -2,071 NA
Tax Rs m 25 859 3,307.1%
Profit after tax Rs m -691 -2,930 NA
Gross profit margin % 13.0 9.3
Effective tax rate % -3.8 -41.5
Net profit margin % -0.4 -1.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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ASHOK LEYLAND Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 186 billion as compared to Rs 162 billion in FY21, thereby witnessing an increase of 14.7%.
  • Long-term debt down at Rs 153 billion as compared to Rs 156 billion during FY21, a fall of 1.7%.
  • Current assets rose 17% and stood at Rs 186 billion, while fixed assets fell 5% and stood at Rs 250 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 436 billion as against Rs 421 billion during FY21, thereby witnessing a growth of 4%.

ASHOK LEYLAND Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 78,175 72,624 -7.1
 
Current Liabilities Rs m 162,238 186,159 14.7
Long-term Debt Rs m 155,646 152,973 -1.7
Total Liabilities Rs m 420,580 435,737 3.6
 
Current assets Rs m 159,189 186,143 16.9
Fixed Assets Rs m 261,391 249,594 -4.5
Total Assets Rs m 420,580 435,737 3.6
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



ASHOK LEYLAND Cash Flow Statement Analysis

  • ASHOK LEYLAND's cash flow from operating activities (CFO) during FY22 stood at Rs 28 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -19 billion, an improvement of 93.4% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs -4 billion on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 5 billion from the Rs -7 billion net cash flows seen during FY21.

ASHOK LEYLAND Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m -10,651 28,446 -
Cash Flow from Investing Activities Rs m -9,911 -19,167 -
Cash Flow from Financing Activities Rs m 13,307 -3,776 -
Net Cash Flow Rs m -7,072 5,499 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for ASHOK LEYLAND

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs -1.0, an decline from the EPS of Rs -0.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 148.0, stands at -2,237.2 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 6.0 times, while the price to sales ratio stands at 1.7 times.
  • The company's price to cash flow (P/CF) ratio stood at 63.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 66.3 89.4
TTM Earnings per share Rs -0.2 -1.0
Diluted earnings per share Rs -0.2 -1.0
Price to Cash Flow x 43.4 63.2
TTM P/E ratio x -482.0 -2,237.2
Price / Book Value ratio x 3.3 5.0
Market Cap Rs m 258,620 361,951
Dividends per share (Unadj.) Rs 0.6 1.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for ASHOK LEYLAND

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.0x during FY22, from 1.0x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 0.9x during FY22, from 1.0x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at -4.0% during FY22, from -0.9% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 7.4% during FY22, from 7.8% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 3.6% during FY22, from 4.4% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 1.0 1.0
Debtors’ Days Days 6 5
Interest coverage x 1.0 0.9
Debt to equity ratio x 2.0 2.1
Return on assets % 4.4 3.6
Return on equity % -0.9 -4.0
Return on capital employed % 7.8 7.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how ASHOK LEYLAND has performed over the last 5 years, please visit here.

ASHOK LEYLAND Share Price Performance

Over the last one year, ASHOK LEYLAND share price has moved up from Rs 119.0 to Rs 148.0, registering a gain of Rs 29.0 or around 24.4%.

Meanwhile, the S&P BSE AUTO Index is trading at Rs 29,733.5 (down 1.4%). Over the last one year it has moved up from 22,177.8 to 29,733.5, a gain of 7,556 points (up 34.1%).

Overall, the S&P BSE SENSEX is up 7.2% over the year.

(To know more, check out historical annual results for ASHOK LEYLAND and quarterly results for ASHOK LEYLAND)

Annual Report FAQs

What is the current share price of ASHOK LEYLAND?

ASHOK LEYLAND currently trades at Rs 0.0 per share. You can check out the latest share price performance of ASHOK LEYLAND here...

What was the revenue of ASHOK LEYLAND in FY22? How does it compare to earlier years?

The revenues of ASHOK LEYLAND stood at Rs 263,347 m in FY22, which was up 34.4% compared to Rs 195,915 m reported in FY21.

ASHOK LEYLAND's revenue has fallen from Rs 295,532 m in FY18 to Rs 263,347 m in FY22.

Over the past 5 years, the revenue of ASHOK LEYLAND has grown at a CAGR of -2.8%.

What was the net profit of ASHOK LEYLAND in FY22? How does it compare to earlier years?

The net loss of ASHOK LEYLAND stood at Rs -2,930 m in FY22, which was NA compared to Rs -691 m reported in FY21.

This compares to a net profit of Rs 4,569 m in FY20 and a net profit of Rs 21,833 m in FY19.

Over the past 5 years, ASHOK LEYLAND net profit has grown at a CAGR of NaN%.

What does the cash flow statement of ASHOK LEYLAND reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of ASHOK LEYLAND reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 28,446 m as compared to Rs -10,651 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -19,167 m as compared to Rs -9,911 m in FY21.
  • Cash flow from financial activity decreased in FY22 and stood at Rs -3,776 m as compared to Rs 13,307 m in FY21.

Here's the cash flow statement of ASHOK LEYLAND for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations14,624-37,4553,832-10,65128,446
From Investments-31,66218,919-12,027-9,911-19,167
From Financial Activity19,05423,97812,38913,307-3,776
Net Cashflow2,0495,4944,209-7,0725,499

What does the Key Ratio analysis of ASHOK LEYLAND reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of ASHOK LEYLAND reveals:

  • Operating profit margins witnessed a fall and stood at 9.3% in FY22 as against 13.0% in FY21.
  • Net profit margins declined from 0.4% in FY21 to 1.1% in FY22.
  • Debt to Equity ratio for FY22 stood at 2.1 as compared to 2.0 in FY21.

Here's the ratio/financial analysis of ASHOK LEYLAND for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)14.414.714.513.09.3
Net Profit Margin (%)6.26.62.1-0.4-1.1
Debt to Equity Ratio (x)1.41.51.72.02.1

 

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