During Q4Fy16, Ashok Leyland incurred an exceptional item cost of Rs.379 crore, which was mainly on account of diminution in value of investments. This alone is the reason why we see the net profit for the quarter down 66% (YoY) at Rs.77 crore. But for this expense, operationally, the company has actually had a great quarter. In fact its profit before this expense stood at Rs 456 crore, up 91% while revenues increased 32% to Rs. 5,955 crore. EBITDA for the quarter was up 13% at Rs.753 crore and margins rose from 10.1% to 12.6%. The company has stated that this process of rationalization will be completed by end of FY17.

For FY16, the company registered a 39% increase in turnover at Rs. 18,822 crores, as against Rs. 13,562 crores, same period last year. Profit After Tax before exceptions stood at Rs 1111 crore as against Rs 233.9 crore, up 375%. Profit After Tax after exceptions for the year stood at Rs. 722 crores, as against Rs. 335 crores, recording a growth of 115%. Increase in sale volume, continued reduction in operating costs and a good product mix, helped EBITDA grow to Rs. 2,166 crore, margins going up sharply from 7.6% to 11.5%.

The company’s equity stands at Rs.284 crore and EPS for the year was at Rs.4 (FV of Re.1). its interest cost during the year has gone up 11% at Rs.968 crore. Borrowings stand at Rs.8660 crore, up from Rs.7046 crore in FY15. Cash has also increased, up from Rs.905 to Rs.1758 crore.