Ashok Leyland Q2 results: Net profit increases to Rs 766.55 crore

Hinduja Group flagship Ashok Leyland announced on Friday a consolidated profit of Rs 766.55 crore for the July-September 2024 quarter.

The city-based heavy commercial vehicle maker had registered a consolidated profit of Rs 550.65 crore during the corresponding quarter of the previous financial year.

The consolidated total income during the quarter rose to Rs 11,261.84 crore, up from Rs 10,754.43 crore in the year-ago period.

In a statement on Friday, the company said it maintains over 31 per cent market share in the domestic medium and heavy commercial vehicle segment.

"Our focus on profitability continues. We are pleased to have improved our profitability by premiumising our products, addressing cost-reduction opportunities, and continuously enhancing our customer service standards," said managing director and CEO Shenu Agarwal.

"Our PAT (profit after tax) for Q2FY is at an all-time high. Our EBITDA (earnings before interest, taxes, depreciation, and amortization) margins have improved both sequentially and year-on-year, marking this the seventh consecutive quarter of double-digit EBITDA. We are on track to achieve mid-teen EBITDA in the medium term," Agarwal added.

Ashok Leyland recorded an 11.6 per cent rise in EBITDA for the July-September 2024 quarter at Rs 1,017 crore, compared to 11.2 per cent (Rs 1,080 crore) in the corresponding quarter of the previous financial year.

The Board, which met on Friday, recommended an interim dividend of Rs 2 per share with a face value of Re 1, reflecting continued improvement in financial performance and a positive outlook for the remaining half of the financial year.

During the quarter under review, sales in the light commercial vehicle segment stood at 16,629 units, compared to 16,998 units sold in the same period last year. Overseas sales during the July-September 2024 quarter grew by 14 per cent to 3,310 units.

The defence, power solutions, and aftermarket businesses continue to perform well and are expected to post good growth for the current financial year, the company noted.

Ashok Leyland Executive Chairman Dheeraj Hinduja stated, "Our strong all-round performance in Q2 is driven by our technological and cost leadership. Internationally, we are intensifying our expansion strategy in key markets across SAARC, the Middle East, Africa, and Asia, aiming to achieve our best-ever performance this fiscal."  "We continue to invest in new products with alternative fuels. Switch Mobility is progressing well with an order book of nearly 2,000 buses," he said.

During the July-September 2024 quarter, Ashok Leyland expanded its offerings in the Tipper, Bus, Haulage, and Light Commercial Vehicle segments.

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