Ashok Leyland Q3 results: Net profit rises 36% to Rs 762 cr, revenue up 8%

Ashok Leyland Q3 FY25 results: Consolidated revenue from operations rose to Rs 11,995 crore in the October-December quarter

Ashok Leyland on Wednesday reported a 36 per cent rise in consolidated net profit at Rs 761.92 crore for the third quarter (Q3) of the financial year 2024-25 (FY25) from Rs 560.21 crore reported during the same period last year, supported by healthy truck and bus sales, as well as sustained fleet replacement demand.

 

Sequentially, net profit rose by 8 per cent from Rs 705.64 crore.

 

The commercial vehicle manufacturer saw its consolidated revenue from operations rise by 8 per cent to Rs 11,995 crore in the October-December quarter, from Rs 11,065.63 crore during the year-ago period. Revenue rose 7.6 per cent on a sequential basis from Rs 11,147.58 crore.

 

Total expense for the auto giant went up marginally by 8 per cent to Rs 10,937.89 crore in Q3FY25, compared to Rs 10,155.07 crore in Q3FY24. Sequentially, expenses rose by 6 per cent.

 

Ashok Leyland’s operating profit, measured by earnings before interest, tax, depreciation, and amortisation (Ebitda), rose 8.8 per cent to Rs 1,211.5 crore, up from Rs 1,114 crore in the corresponding period last year.

 

The company's Ebitda margin expanded to 12.8 per cent, compared to 12 per cent in Q3FY24, exceeding the 11.8 per cent margin forecast by analysts. This improvement was driven by cost-cutting initiatives, a favourable product mix, and stable raw material prices.

 

Following the earnings announcement, Ashok Leyland’s shares surged nearly 5 per cent to trade at Rs 212.55 on the BSE at 1:50 PM. 

 

The stock gained traction as investors responded positively to the company’s better-than-expected results and its optimistic industry outlook.