Ashok Leyland Q3 profit rises 35% to Rs 820 cr on exports, festive sales

Commercial vehicle maker expects international sales to expand as it launches new products

Truck and bus manufacturer Ashok Leyland on Wednesday reported a 35 per cent surge in consolidated net profit to Rs 820 crore in the third quarter of the financial year (Q3 FY25), up from Rs 609 crore the year before.

 

The flagship company of Hinduja Group achieved a record net profit and revenue, as exports grew 33 per cent and sales improved in the festive season.

 

Revenue in Q3 FY25 grew 8 per cent to Rs 11,995 crore, from Rs 11,066 crore the year before. The company’s board approved plans to invest around Rs 500 crore in UK-based subsidiary Optare and Rs 200 crore in Hinduja Leyland Finance. “During the quarter, we have seen our sales improving due to festive season demand, and also the rise in government investments. The export market also performed well during the period,” said Dheeraj Hinduja, executive chairman of Ashok Leyland, in a statement.

 

 

The company exported 4,151 units in Q3 FY25, up 33 per cent. It turned cash positive at the end of the quarter with a net cash of Rs 958 crore as against net debt of Rs 1,747 crore. “We are looking to consolidate our position in export markets in FY26 also. We are ensuring that we have a left-hand drive version for all our models, and our exports have a good mix of trucks and buses. For us, the Gulf Cooperation Council (GCC) countries are the major markets, in addition to Africa. The growth is predominantly driven by the GCC,” said Shenu Agarwal, managing director and chief executive officer, Ashok Leyland.

 

The company had an ebitda of Rs 1,211 crore (12.8 per cent) in Q3 FY25 compared to Rs 1,114 crore (12 per cent) in the same quarter the year before, registering double-digit percentage ebitda for the eighth consecutive quarter. (Ebitda is earnings before interest, taxes, depreciation and amortization.)

 

“The steady progress we are making in profitability is backed by products that deliver superior performance coupled with robust customer engagement. Sales in international markets are showing strong growth, and we expect this momentum to accelerate with the launch of new products,” said Dheeraj Hinduja.

 

“We are also continuing to invest in battery electric and alternative fuel products to maintain our technology leadership position. Switch has a healthy order book and has plans to come out with a series of products in the next 12 months.”

 

“Relative to Q2, the MHCV (medium and heavy commercial vehicles) market has revived significantly in Q3, and is expected to improve further as we enter the last quarter. Our focus remains on profitable growth. Non-CV businesses have done well and offer more headroom for growth. We remain optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable,” said Agarwal.

 

Ashok Leyland’s domestic MHCV market share continues to be over 30 per cent. The company maintained market leadership in the bus segment. It recently launched Saathi, its foray into the entry-level LCV segment, opening up a new customer segment.

 

At the Bharat Mobility Global Expo in New Delhi, Ashok Leyland showcased the concept of an “industry-first” electric Port Terminal Tractor as well as India’s first 15-meter bus with a front engine and a capacity of 42 sleeper berths. At the show, Switch displayed a concept electric truck in the 7.5T gross vehicle weight range.