Commercial vehicle major Ashok Leyland has reported its revenues for Q2 FY2024 at Rs 9,638 crore, up 17 percent as against Rs 8,266 crore last year. The profit after tax came at Rs 561 crore, up 181 percent compared to the same period last year.
The company sold 29,947 M&HCVs in the domestic market, up 18 percent over the same period last year. LCV volumes came at 16,998 units, a marginal dip compared to 17,040 units last year. The company exported a total of 2,901 CVs which was 4 percent higher despite multiple socio-political challenges across the globe.
Ashok Leyland states that while its overall M&HCV market share was improving, it saw a significant increase in the bus market share grabbing the number 1 position in the country.
The EBITDA for the quarter was Rs 1,080 crore, up 11.2 percent with a net debt for the quarter at Rs 1,139 crore with a debt equity at 0.1.
The CV maker says all its other businesses also posted good growth in the current quarter. The company expanded its M&HCV range by launching new products in Tipper, Tractor and MAV categories. The focus on expansion of distribution network continued with further addition of 47 touch points in the quarter – especially in the Northern and Eastern parts of the country.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said “We continue to see strong demand in all segments of trucks and passenger vehicles. The industry continues to post strong growth, on the back of strong macroeconomic factors and we are confident that FY’ 24 will see further growth in the second half as well. Our robust all-round performance exemplifies technological and cost leadership of Ashok Leyland. While International business globally is challenged owing to the conflicts across the globe, we are intensifying our expansion strategy in our focus markets of Middle East, Africa and Asia. The company continues to build its capabilities in alternative energy and shall be soon coming up with some exciting products and solutions.”
Shenu Agarwal, MD & CEO, Ashok Leyland, added, “We have grown and grown profitability. The second half of the year appears to have the twin tail winds of demand growth and softer commodity prices which should improve the profitability of the industry. For Ashok Leyland, this is the 3rd consecutive quarter of double-digit EBITDA. There is tremendous focus on margin enhancement, network expansion, operational efficiency, cost optimisation and deployment of digital as an enabler for growth and productivity. There is enhanced thrust to grow all non-M&HCV businesses as well and we expect to see the benefits of all of this in the coming quarters.”
