Ashok Leyland's Q1 FY'24 profit skyrockets to ₹576 Crore

25 Jul 2024 , 02:47 PM

Ashok Leyland, the leading Indian automotive manufacturer under the Hinduja Group, reported significant financial growth for Q1 FY’24. The company’s net profit soared to ₹576 crore, reflecting an over eightfold increase compared to ₹68 crore in the same quarter of the previous year. For the quarter, Ashok Leyland’s revenue was ₹8,189 crore, up from ₹7,223 crore in Q1 FY’23.

Domestic sales of Medium and Heavy Commercial Vehicles (MHCV) grew by 7%, with the market share increasing from 30.0% to 31.2%. The MHCV truck market share reached 31.7% for Q1 FY’24, compared to 31.1% in the previous year. The Light Commercial Vehicle (LCV) segment saw a 3% rise in volume, with 14,821 units sold in Q1 FY’24 compared to 14,384 units in the same quarter last year.

EBITDA for the quarter jumped to 10.0%, amounting to ₹821 crore, up from 4.4% or ₹320 crore in Q1 FY’23. The net debt to equity ratio was 0.2 times at the end of Q1 FY’24.

The strong performance was driven by high demand for the modular AVTR range of trucks and successful network expansion, which enhanced revenue and market share. In the LCV segment, the Bada Dost range saw strong market acceptance. The company’s Power Solutions and Aftermarket businesses also contributed significantly to its top line.

Tax expenses were reduced due to a one-time deferred tax credit of ₹172 crore, associated with an anticipated transition to a lower tax regime in the upcoming financial year.

Executive Chairman Mr. Dheeraj Hinduja expressed satisfaction with the company’s strong performance amidst market growth and cost control. He highlighted ongoing international expansion efforts and the transition towards net-zero carbon mobility through the company’s electric vehicle subsidiary, Switch Mobility.

MD & CEO Mr. Shenu Agarwal emphasized the improved profitability due to revenue growth and effective cost management. He stressed the company’s commitment to achieving and maintaining double-digit profitability while investing in future technologies.

Ashok Leyland, based in Chennai, India, is a major multinational automotive manufacturer owned by the Hinduja Group. Established in 1948 as Ashok Motors and renamed Ashok Leyland in 1955 after partnering with British Leyland, it stands as the second-largest commercial vehicle manufacturer in India, the third-largest global bus manufacturer, and the tenth-largest truck manufacturer.

The company operates manufacturing plants in various locations across India, including Ennore, Bhandara, Hosur (two facilities), Alwar, and Pantnagar. It also has international manufacturing facilities in Ras Al Khaimah (UAE), Leeds (UK), and a joint venture with Alteams Group for producing die-casting components. The company’s operations span nine plants, also producing spare parts and engines for industrial and marine applications.