Q1FY22 Consolidated Highlights
- 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.
- 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.
- 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.
- 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.