Expect export growth to remain strong in coming quarters: Hinduja

The key export markets for Ashok Leyland's buses and trucks are stable, and the company expects strong volume growth in exports to continue in the coming quarters, Executive Chairman Dheeraj Hinduja (pictured) told Business Standard. 

Geopolitical turmoil has risen due to ongoing wars like the Russia-Ukraine conflict and the Israel-Gaza crisis, causing global instability. Tensions between major powers, such as the US and China, new tariff barriers on trade, are further straining international relations. 

In the third quarter of the current financial year, Ashok Leyland exported 4,151 units, recording 33 per cent year-on-year (Y-o-Y) growth. The company on Wednesday also reported a 35 per cent YoY surge in consolidated net profit to Rs 820 crore in the third quarter. 

When asked about the impact of the ongoing geopolitical tumult on its exports, he replied: "The countries we are operating in, especially in GCC (Gulf Cooperation Council), which is seeing maximum growth, there is quite a bit of stability there. So, I don’t think that’s going to get severely impacted, especially UAE and Saudi Arabia. They’re very large markets. We are in pockets of African markets, and we are hoping to see a recovery of the SAARC market.” 

“Sri Lanka, Nepal and Bangladesh have been very strong markets for us. While there was a slowdown in Bangladesh due to the change in governments, the market there is reviving once again now as compared to our projections. So, this year, we see very strong growth in international operations. On the back of the new model introductions that we're doing in our markets, we feel that this number should only continue to grow in the next year and the years ahead,” he added. 

He mentioned that the demand for passenger buses is strong. “Every state government continues to buy across the board. So, the order book for buses, not only for us but even for our competitors, is very strong,” he added. 

Hinduja said things are beginning to look a lot brighter than they were during this financial year, and the fourth quarter is a good reflection of that. 

When asked about his estimates about the share of alternative fuel vehicles by 2030, he said: “A bit difficult to estimate, because there have been a lot of fluctuations globally on this. But, in our initial projections, we had thought by 2030, on the bus side, at least 20 per cent of the market should possibly be electric. In many respects, I find things are moving even faster than that.”