Ashok Leyland has reported a Profit After Tax (PAT) of Rs 770 crore for the quarter, growing at 37 percent over the same period last year. EBITDA for the quarter was up at 11.6 percent (Rs 1017 crore) as against 11.2 percent (Rs 1080 crore) in the corresponding period last year.
Ashok Leyland’s Domestic MHCV market share continues to be over 31 percent. The Company maintained market leadership in the Bus segment. The LCV domestic market share in the addressable segments has also gained in the first half of the year.
MHCV domestic sales volume was at 25,685 compared to 29,947 in Q2 FY24. LCV volume was at 16,629 compared to 16,998 in Q2 last year. Export volumes for the quarter at 3310 units were higher by 14 percent. Defence, Power Solutions and Aftermarket Businesses continue to perform well and are expected to post good growth in the current fiscal. The Company continued to expand its innovative product offerings in Q2 by launching new products in Tipper, Bus, Haulage and LCV segments. The focus on expansion of distribution network also continued.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland, said “The Indian Economy is expected to do well in the second half which would benefit our industry. We remain optimistic about industry prospects for H2 on back of strong macroeconomic fundamentals, supported by the resumption of Government spending in Capex and good monsoons.”
He added, “Our robust all-round performance in Q2 is backed by our technological and cost leadership. Internationally as well, we are intensifying our expansion strategy in our focus markets of SAARC, Middle East, Africa, and Asia, aimed at posting the best performance ever during this fiscal. We continue to invest in new products with alternative fuels. Switch is doing well with an order book of nearly 2000 buses.”
Shenu Agarwal, MD & CEO, Ashok Leyland, added, “Our focus on profitability continues. We are happy that we could improve our profitability by focusing on premiumisation of our products, addressing cost compression opportunities, and continuously elevating our standards of customer service.”
He added, “Our PAT for Q2 FY25 is an all-time high. Our EBITDA margins have improved both sequentially and on YoY basis, making this the seventh consecutive quarter of double-digit EBITDA. We are well on track to achieve mid-teen EBITDA in the medium term.”
Owing to continued improvement in the Company’s fiscal performance and a positive outlook for the balance half of the year, the Board has recommended an Interim Dividend of Rs. 2 per share on Face value of Re 1.
