MUMBAI: Ashok Leyland, a prominent heavy commercial vehicle manufacturer, has reported a commendable net profit of Rs770 crore for the quarter ending September 2024, reflecting a robust 37 per cent increase compared to the same period last year.
The financial performance underscores the company’s resilience and adaptability in a competitive market. In light of its positive fiscal outlook, the company’s Board has announced an interim dividend of Rs2 per share, demonstrating its commitment to returning value to shareholders.
The company has also highlighted its earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter, which rose to 11.6 per cent, amounting to Rs1,017 crore. This marks a slight increase from Rs1,080 crore in the corresponding quarter of the previous year, indicating a stable operational performance.
Ashok Leyland maintains a dominant position in the domestic market, with a market share exceeding 31 per cent in the Medium and Heavy Commercial Vehicle (MHCV) segment and strong leadership in the bus sector.
However, the sales volumes for MHCV and Light Commercial Vehicles (LCV) have shown a slight decline when compared to the previous year.
Sales stats
The company reported MHCV domestic sales of 25,685 units, down from 29,947 units in Q2 FY24, and LCV volumes at 16,629 units, down from 16,998 units in the same quarter last year. Conversely, export sales experienced a notable increase, with volumes rising by 14 percent to 3,310 units.
The diverse business segments of Ashok Leyland, including defence, power solutions, and aftermarket services, continue to exhibit strong growth potential. The company is committed to innovation in product development, recently launching new offerings in various segments such as tippers, buses, haulage, and LCVs. Furthermore, the expansion of the distribution network remains a strategic focus, enhancing the company’s market reach.
Dheeraj Hinduja, Executive Chairman of Ashok Leyland, expressed optimism regarding the broader economic landscape, forecasting positive industry developments in the latter half of the fiscal year. He attributed this optimism to strong macroeconomic fundamentals, increased government capital expenditure, and favorable agricultural outcomes.
Hinduja emphasised the company’s commitment to technological advancement and international expansion, particularly in key markets including the SAARC region, the Middle East, Africa, and Asia.
Managing Director and CEO Shenu Agarwal highlighted that the profit after tax for second quarter of FY25 represents an all-time high for Ashok Leyland. The consistent improvement in EBITDA margins signals the company’s effective cost management and operational efficiency, with aspirations to achieve mid-teen EBITDA levels in the medium term.
