Ashok Leyland, one of the leading commercial vehicle maker has reported revenue of Rs 8,189 crore for Q1 FY2024, up 13 percent YoY. The net profit came at Rs 576 crore as against Rs 68 crore in the same period last year.
The tax expense for the quarter was lower as it considers a one-time deferred tax credit of Rs 172 crore on account of the expected transition to a lower tax regime in the following financial year.
The Q1 EBITDA of Rs 821 crore came at 10 percent as against Rs 320 crore at 4.4 percent a year ago.
Growth across segments
During the first quarter, the company sold 14,821 LCVs, up 3 percent YoY, 21,209 M&HCV trucks a flat growth, YoY, and 3,077 M&HCV buses up 93 percent YoY. The company also increased its M&HCV volume by 7 percent and expanded its market share from 30 percent to 31.2 percent.
Ashok Leyland said it continued to see strong demand for the modular AVTR range of trucks. The efforts on network expansion also helped the uptick in revenue and market share. In the LCV segment as well, the volumes grew on the back of good market acceptance of the Bada Dost range. The Power Solutions and Aftermarket businesses continued to contribute strongly to the top line of the company.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said “With the industry maintaining the growth in Q1 FY 2024, we have been able to post excellent results with focused market performance while reining in costs. We are pleased that we have continued to grow our market share in Q1. We are concurrently intensifying our efforts in international expansion. Through our electric vehicle subsidiary, Switch Mobility, we are actively moving towards net zero carbon mobility. The EV market is growing gradually, and we are geared to participating in this growth with a clear road map.”
Shenu Agarwal, MD & CEO, Ashok Leyland added, “With expansion in revenues and efficient cost management we have seen our bottom line improving substantially. While we continue to expand our market penetration on the back of efficient products and expanding the network, we shall remain acutely focused on achieving and sustaining double-digit profitability. This is important for us as we focus on improving our resilience and investing in technologies of the future.”
Reacting to the results, Himanshu Singh – Research Analyst, Prabhudas Lilladher said, “Ashok Leyland was targeting to reach double-digit margins in FY24, which it has achieved in Q1 FY24 itself, which gives confidence on its medium-term margin targets of reaching mid-teen.”
