Revenue from operations in Q1FY22 were 4,087.9 crores. Revenue saw a growth of 175.1% YoY but also witnessed a decline of (-50%) QoQ.
EBITDA for Q1FY22 stood at Rs. 337.3 crores, posting a decline of (-66.7%) QoQ and growth of +175.9% YoY.
EBITDA margin stood at 8.25% in Q1FY22, the same for Q1FY21 was 8.2%. Q4FY21 EBITDA margin was 12.4%.
The company posted a net loss of (-273.9 crores) in Q1FY22. It had posted a profit of Rs. 352.6 crores in Q4FY21 and a loss of Rs. (-409) crores in Q1FY21.
The company has said that here is a one-off expense of Rs. 40 crores – 45 crores due to CSR, R&D, and MTM on foreign currency loan.
Q1FY22 Standalone Highlights
Revenue from operations in Q1FY22 were 2951 crores. Revenue saw a growth of 353.4% YoY but also witnessed a decline of (-57.8%) QoQ.
The company posted a negative EBITDA of Rs. (-140.1 crores) in Q1FY22. EBITDA for Q4FY21 was Rs. 534.2 crores and for Q1FY21 it was negative Rs. (-333.2 crores).
The company posted a net loss of (-282.3 crores) in Q1FY22. It had posted a profit of Rs. 241.2 crores in Q4FY21 and a loss of Rs. (-388.8) crores in Q1FY21.
Standalone Debt to Equity remains at 0.62 which was also the case during Q1FY21.
Volumes
Improvement in fleet utilisation in 2021.
The company is not looking at expansion of plants. It is currently focused on de-bottlenecking of capacities.
The truck volumes increased by 57% QoQ and also a growth of 107% YoY.
The market share of the company has increased to 28.9%.
The LCV growth factors were increased in demand due to e-commerce and rural economy. LCV volume has grown by 107% YoY.
Bus volumes currently is at 7k units as compared to 42k units in normal scenario.
Price hike and commodities
The price increase in commodities was offset by price increase by the company in Q3FY21 and Q4FY21. The company also undertook cost control measures.
The company expects the commodity pressure until H1FY22.
The company has taken price hikes of 2% each in Mar 21 and July 21.
Taking price hike is difficult as the demand environment is already low.
Capex and Investments
The CAPEX for FY21 is close to Rs. 621 crores.
The company did investments of Rs. 368 crores in FY21.
Switch Mobility would raise capital individually. AL is not going to infuse capital.
Capex would be done in LCV segment due to good demand of Bada Dost.
Demand scenario
The company has seen good enquiries in July and August.
The Bada Dost, which was launched in LCV segments has been seeing good acceptance with customers.
The demand for LCV trucks has increased due to last mile connectivity due to increase in e-commerce.
MHCV segment demand is expected to improve with increase in economic activities like infrastructure and real estate.
High diesel prices, covid lockdowns and low freight rates have affected the demand.
Finance Operations
The book size currently is Rs. 26,000 crores.
NNPA currently stand at 2.6% but the Provision to Coverage ratio is at 48%.
Collection efficiency in June is at 85% which has been improving MoM.
The company loan book is diversified across 2 wheelers, 3 wheelers, off road financing, loan against property.
40% of the book is in CVs.
If the company requires, it would rase Rs. 150 crores to support the growth.
Download
