Ashok Leyland, the Indian flagship of the Hinduja Group has announced its financial results for Q3 FY2024. The company reported revenue of Rs 9,273 crore, up 2.7 percent YoY and net profit of Rs 580 crore, up 60 percent YoY.
The momentum was achieved on the back of strong demand for commercial vehicles. It sold 138,416 units in the first nine months of the fiscal year, its highest ever for the period. The company says despite global headwinds, it achieved export volume of 3,128 units as against 2,936 units last year. For Q3 the debt came at Rs 1,747 crore with debt-equity improving to 0.2 times as compared to 0.3 times at the end of previous quarter. It invested Rs 662 crore in the current quarter into Optare / Switch, as prospects of eLCVs and eBuses continue to strengthen.
The OEM says it continued to see strong demand for its products both in the MHCV and LCV segments, holding its position as the lead manufacturer of buses in the country. During the quarter the company garnered orders for more than 3,800 buses from State Transport Undertakings. The Bus market continues to grow significantly and is expected to bolster overall industry volumes.
At the recently held Bharat Mobility Global Expo at New Delhi, it commenced delivery of its first Electric 55T Tractor – Trailer, and its first 14T Boss Electric Truck.
Dheeraj Hinduja, Executive Chairman, Ashok Leyland said “The present favourable market conditions are expected to hold in the foreseeable future. The steady progress we are making in sales volume and profitability is backed by products that deliver superior performance and customer value coupled with robust customer engagement across segments. A suite of new products in conventional and alternate propulsion technologies is slated for introduction progressively to consolidate our gains in the domestic market and facilitate our forays in overseas markets.”
Shenu Agarwal, Managing Director & CEO, Ashok Leyland, added, “We have been able to achieve significant improvement in our Net Profits. The current quarter saw the confluence of good volumes, better price realisation, and higher cost savings, thus helping us achieve better profitability. Other businesses such as After-market, Power Solutions and Defence also continue to strongly contribute to our top line and margins. On back of new differentiated products, deeper focus on cost optimisation, and with continued discipline on pricing, we shall relentlessly pursue improvement in profitability. We remain confident and optimistic about the growth of the CV industry in the medium and long term as macroeconomic factors continue to be favorable.”
