Ashok Leyland Reports Nearly Tripled Profit After Tax in September Quarter 2023-24
Commercial vehicle maker Ashok Leyland has announced that its profit after tax (PAT) nearly tripled to Rs 561 crore in the September quarter of the 2023-24 fiscal year. This represents a significant jump from the Rs 199.31 crore reported in the same period a year earlier. The company also reported a rise in revenues, which increased to Rs 9,638 crore from Rs 8,266 crore in the second quarter of FY23.
According to a statement from the company, the EBITDA for the quarter was Rs 1,080 crore, up from Rs 537 crore in the corresponding quarter of FY23. Meanwhile, net debt stood at Rs 1,139 crore at the end of the second quarter.
In terms of vehicle sales, Ashok Leyland reported that domestic medium and heavy commercial vehicles (MHCV) sales stood at 29,947 units, marking an 18% increase from the previous fiscal quarter. However, light commercial vehicle (LCV) volume was slightly down at 16,998 units compared to 17,040 LCVs sold in the same period last year. Despite multiple socio-political challenges across the globe, export volumes for the quarter (MHCV & LCV) were 4% higher at 2,901 units from the year-ago period.
Additionally, the company noted that it has significantly increased its bus market share, positioning it as the top bus manufacturer in the country.
“We have grown and improved profitability. The second half of the year appears to have the twin tailwinds of demand growth and softer commodity prices which should improve the profitability of the industry,” said Shenu Agarwal, Managing Director and Chief Executive Officer of Ashok Leyland.
Ashok Leyland also highlighted its expansion of the distribution network, with the addition of 47 touch points in the quarter, especially in the northern and eastern parts of the country.
While International business globally is challenged owing to the conflicts across the globe, “we are intensifying our expansion strategy in our focus markets of the Middle East, Africa and Asia,” said Dheeraj Hinduja, Executive Chairman of Ashok Leyland.
Overall, Ashok Leyland is confident in the future growth of the industry and plans to continue enhancing its capabilities and expanding its product range.
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