Ashok Leyland Ltd reported a robust 37% increase in net profit, reaching Rs 770 crore for the quarter ending September 30, 2024, up from Rs 561 crore a year earlier. Revenue from operations, however, dipped 9% to Rs 8,769 crore, compared to Rs 9,638 crore in the same quarter last year.
The company’s shares were trading slightly lower at Rs 215.23 on November 8, reflecting a 0.26% dip. Ashok Leyland declared an interim dividend of Rs 2 per share, with the board citing steady fiscal performance and a positive outlook for the remainder of the year as key factors in the decision.
Executive Chairman Dheeraj Hinduja shared optimism for the industry’s prospects in the second half, buoyed by strong macroeconomic fundamentals, resumed government capex spending, and favourable monsoon conditions. “Our strong Q2 results reflect our technological and cost leadership. Internationally, we’re expanding across SAARC, the Middle East, Africa, and Asia, aiming for our best-ever performance this fiscal,” he noted, highlighting the company’s commitment to new product development and alternative fuels. He also shared that Switch Mobility, Ashok Leyland’s EV arm, has an order book of nearly 2,000 buses.
Managing Director & CEO Shenu Agarwal emphasized Ashok Leyland’s focus on profitability through product premiumization, cost management, and elevated customer service standards. “This quarter’s PAT is our highest-ever, and we’ve achieved double-digit EBITDA for the seventh consecutive quarter,” said Agarwal, adding that the company is well-positioned to hit mid-teen EBITDA in the near term. EBITDA for the quarter rose to 11.6%, reaching Rs 1,017 crore, up from 11.2% a year ago.
Ashok Leyland maintained its over 31% market share in the domestic Medium and Heavy Commercial Vehicle (MHCV) category and a leading position in the Bus segment. The Light Commercial Vehicle (LCV) market share also showed gains in key segments during the first half of the fiscal year.
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Source: Moneycontrol
