Ashok Leyland Q2 net profit increases to Rs 199 cr as sales improve

Hinduja group flagship Ashok Leyland has reported a profit after tax of Rs 199 crore for the second quarter ended September 30, aided by robust sales across segments.

It had posted a net loss of Rs 83 crore in the September 2021 quarter, the commercial vehicle major stated in a late-night regulatory filing on Thursday.

Revenues in the period under review stood at Rs 8,266 crore compared to Rs 4,458 crore a year ago, it added.

Ashok Leyland's domestic MHCV (medium and heavy commercial vehicles) volume rose to 25,475 units in the second quarter against 11,988 units in the year-ago period, it said.

It helped the company achieve market share gains of 9.6 per cent in the quarter, Ashok Leyland said.

Similarly, the company stated that its light commercial vehicle sales volume increased by 28 per cent to 17,040 units against 13,328 units in the same period last fiscal.

Export volumes (MHCV & LCV) for the September quarter surged 25 per cent to 2,780 units against 2,227 units a year earlier.

"Despite global recessionary trends, the Indian commercial vehicle market continues to grow well, the industry has seen strong volumes in Q2 FY23 over the same period last year," Ashok Leyland Executive Chairman Dheeraj Hinduja said.

The company sees the demand continuing in all segments of trucks and passenger vehicles and remains confident and optimistic about the future, he added.

"We continue to build competitive products and organisational capabilities for future products using alternate fuels," Hinduja stated.

Ashok Leyland Director and CFO Gopal Mahadevan said that while the company will pursue growth, it wants to do it profitably and sustainably.

"The team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, Defence and digital customer solutions, which have contributed increasingly to our revenue," he added.