Ashok Leyland Q2 results: Net profit soars multi-fold to Rs 561 crore

10 Nov 2023 , 11:08 AM

Ashok Leyland, a manufacturer of commercial vehicles, announced on November 9 that its consolidated net profit for the September quarter of 2023–24 increased by 181% (YoY) to Rs 561 crore. This increase was attributed to increasing sales. In the same time of the previous fiscal year, the company had made a net profit of Rs 199 crore.

The net profit decreased sequentially by 3% from Rs 576 crore in the prior quarter.

Operating revenue increased 16.6% during the quarter to Rs 9,638 crore from Rs 8,266 crore during the corresponding period in the previous fiscal year.

In comparison to Rs 537 crore (6.5 percent) in Q2 FY’23, EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) was Rs 1,080 crore (11.2 percent) for the quarter.

With a debt equity ratio of 0.1 times, net debt at the end of the quarter was Rs 1,139 crore.

‘We continue to see strong demand in all segments of trucks and passenger vehicles,’ stated Dheeraj Hinduja, Executive Chairman of Ashok Leyland. Due to favourable macroeconomic conditions, the industry is still expanding rapidly, and we anticipate that FY’24 will witness even more expansion in the second half of the year.’

With 29,947 units, Ashok Leyland’s domestic Medium and Heavy Commercial Vehicles (MHCV) volume increased by 18% compared to Q2 of last year. LCV volumes for the second quarter of FY’24, at 16,998 units, are unchanged from Q2 FY’23 (17,040 nos.). The quarter’s export volumes (MHCV & LCV), at 2,901 units, increased by 4% despite numerous socio-political difficulties worldwide.

While the world’s conflicts present challenges for international business, we are stepping up our expansion strategy in the Middle East, Africa, and Asia, our key markets. Hinduja continued, ‘The company is expanding its expertise in alternative energy and will soon be releasing some intriguing goods and solutions. The second half of the year looks to have the twin tailwinds of rising demand and falling commodity prices, according to Shenu Agarwal, MD & CEO of Ashok Leyland, which should boost industry profitability.’

This is Ashok Leyland’s third quarter in a row with double-digit EBITDA.  Margin improvement, network expansion, operational effectiveness, cost optimization, and digital deployment as a catalyst for productivity and growth are all receiving a lot of attention. In the upcoming quarters, we anticipate reaping the rewards of this increased push to expand all non-MHCV industries as well, said Aggarwal.

On November 10, Ashok Leyland’s shares traded at Rs 172.45 on the BSE, up 1.26% percent from the previous close.

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