Ashok Leyland Reports Nearly Tripled Profit in the September Quarter
The commercial vehicle manufacturer Ashok Leyland has announced a significant increase in its profit after tax for the September quarter of the fiscal year 2023-24. The company’s profit after tax (PAT) nearly tripled to Rs 561 crore, compared to Rs 199.31 crore in the same period last year.
According to a statement released by the company, revenues for the quarter rose to Rs 9,638 crore from Rs 8,266 crore in the second quarter of FY23. The Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter was reported at Rs 1,080 crore, a substantial increase from Rs 537 crore in the corresponding quarter of the previous fiscal year.
The company also stated that its domestic medium and heavy commercial vehicles (MHCV) sales stood at 29,947 units, marking an 18% increase from the same period last year. Meanwhile, light commercial vehicle (LCV) volume was reported at 16,998 units, compared to 17,040 LCVs sold in the same period last year.
Despite various socio-political challenges globally, export volumes for the quarter (MHCV & LCV) were 4% higher at 2,901 units from the year-ago period. It was also noted that the company significantly increased its bus market share, making it the top bus manufacturer in the country.
Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland, expressed optimism about the company’s growth and profitability. He mentioned that the second half of the year is expected to see demand growth and softer commodity prices, which should improve industry profitability.
Furthermore, the company announced the expansion of its MHCV range by launching new products in tipper, tractor, and MAV categories. The distribution network also saw expansion with the addition of 47 touch points in the quarter, particularly in the northern and eastern parts of the country.
Dheeraj Hinduja, Executive Chairman of Ashok Leyland, expressed confidence in the industry’s strong growth and stated that the company is intensifying its expansion strategy in focus markets such as the Middle East, Africa, and Asia. He also mentioned that the company continues to build its capabilities in alternative energy and will soon be introducing exciting products and solutions.
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