Ashok Leyland second quarter results: Company’s consolidated net profit is Rs 766.55 crore

Hinduja Group flagship store Ashok Leyland on Friday announced consolidated profit of $766.55 crore in July-September 2024 quarter.

The city-based heavy commercial vehicle manufacturer’s consolidated profit was $550.65 crore in the corresponding period of the previous fiscal year.

Total consolidated revenue for the quarter rose to $11,261.84 Crore, higher than $10,754.43 crore in the same period last year.

The company said in a statement on Friday that it maintains a market share of over 31% in the domestic medium and heavy commercial vehicle segment.

Shenu Agarwal, Managing Director and Chief Executive Officer, said: “We continue to focus on profitability. We are pleased to improve profitability by improving product quality, seizing cost reduction opportunities and continuously improving customer service standards.”

“Our PAT (profit after tax) in the second quarter was at an all-time high. Our EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved both sequentially and year-over-year, marking our seventh consecutive quarter of growth. It is expected to achieve double-digit EBITDA in the medium term.

Ashok Leyland’s EBITDA grew 11.6% in July-September 2024 quarter $1,017 crore, compared to 11.2% ( $1,080 crore) in the corresponding quarter of the previous financial year.

The board met on Friday and recommended an interim dividend $2 per share, with a face value of Re 1, reflecting continued improvement in financial performance and positive prospects for the second half of the financial year.

Light commercial vehicle sales in the quarter were 16,629 units, compared with 16,998 units in the same period last year. Overseas sales in the July-September quarter of 2024 rose 14% to 3,310 units.

The company noted that its defence, power solutions and aftermarket businesses continue to perform well and expect good growth in the current financial year.

Management Comments

Ashok Leyland Executive Chairman Dheeraj Hinduja said: “Our strong overall performance in the second quarter was driven by our technology and cost leadership. Internationally, we are strengthening our presence in key markets in SAARC, the Middle East, Africa and Asia. The expansion strategy is designed to deliver our best-ever results this financial year.

“We continue to invest in new products that use alternative fuels. Switch Mobility is progressing well, with orders approaching 2,000 buses,” he said.

In the July-September 2024 quarter, Ashok Leyland expanded its product range in tippers, buses, transport and light commercial vehicles segments.

The company further emphasized on expanding its distribution network throughout the quarter, it added.