Ashok Leyland, one of the leading commercial vehicle manufacturers in India has reported revenue of Rs 8,266 crore in Q2 FY2023, up 85 percent YoY, compared to Rs 4,458 crore a year ago.
The net profit came at Rs 199 crore compared to a loss of Rs 83 crore in the same period last year.
During the quarter the company sold 17,040 LCVs compared to 13,328 for the same period last year and 25,475 M&HCVs, compared to 11,988 units last year. With this Ashok Leyland says it has achieved a market share of 9.6 percent in the quarter.
The exports came at 2,780 MHCV and LCV, which was 25 percent higher YoY.
The OEM says it saw healthy demand for the AVTR range – India’s first modular truck platform, and this demand is expected to further improve, mirroring the expected increase in economic activity. In the LCV segment, the Bada Dost was well received by customers and the company is ramping up production in line with market demand. Going forward, last-mile connectivity demand propelled by e-commerce is likely to continue supporting ICV and LCV truck volumes. Other businesses like Aftermarket and Power Solutions Business continue to contribute to the top line of the Company.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said “Despite global recessionary trends, the Indian commercial vehicle market continues to grow well, the industry has seen strong volumes in Q2 FY23 over the same period last year. We see the demand continuing in all segments of trucks and passenger vehicles and we remain confident and optimistic about the future. We continue to build competitive products and organisational capabilities for future products using alternate fuels.”
Gopal Mahadevan, Director & CFO, Ashok Leyland added, “While we will pursue growth, we want to do it profitably and sustainably, the team continues its focus on operating costs and margins. We have been driving our other businesses like aftermarket, power solutions, Defence and digital customer solutions which have contributed increasingly to our revenue.”