Ashok Leyland, a prominent player in the commercial vehicle sector and part of the Hinduja Group, has reported its financial performance for the third quarter of the fiscal year 2024. The company's net profit soared by 60 per cent year-over-year to Rs 580 crore, a significant increase from the previous year's figures. This growth in profitability is attributed to strong demand for its range of trucks and buses, as well as improved realizations.
The company's revenue also witnessed an uptick, registering a 2.7 per cent rise to Rs 9,273 crore compared to the same period in the preceding fiscal year. This increase in revenue reflects the company's ability to navigate through market challenges and capitalize on the opportunities presented by the commercial vehicle industry.
In addition to the impressive net profit and revenue, Ashok Leyland achieved an EBITDA margin of 12 per cent during the quarter, indicating efficient operational management and cost optimization strategies. The company's debt position improved at Rs. 1747 crore, with a debt-equity ratio of 0.2 times at the end of the December quarter, down from 0.3 times at the end of the previous quarter.
The company's success is further underscored by its export volume growth of 6.5% in Q3 FY24, demonstrating its expanding global footprint.
The company said that it has invested Rs. 662 crore in the current quarter into Optare PLC / Switch, as prospects of eLCVs and eBuses continue to strengthen.
Overall, Ashok Leyland's Q3 FY2024 results reflect a strong financial performance, with significant gains in net profit and steady revenue growth, positioning the company well for continued success in the commercial vehicle market.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said, “The present favourable market conditions are expected to hold in the foreseeable future. The steady progress we are making in sales volume and profitability is backed by products that deliver superior performance and customer value coupled with robust customer engagement across segments. A suite of new products in conventional and alternate propulsion technologies is slated for introduction progressively to consolidate our gains in the domestic market and facilitate our forays in overseas markets.”
Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added, “We have been able to achieve significant improvement in our Net Profits. The current quarter saw the confluence of good volumes, better price realization, and higher cost savings, thus helping us achieve better profitability. Other businesses such as After-market, Power Solutions and Defence also continue to strongly contribute to our top line and margins. On back of new differentiated products, deeper focus on cost optimization, and with continued discipline on pricing, we shall relentlessly pursue improvement in profitability. We remain confident and optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable.”
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